Category Archives: Bookkeeping

Financial Ratios Complete List and Guide to All Financial Ratios

In this blog, we’ll go beyond the basics and delve into the nuances of accounting ratios. Profitability ratios are crucial for businesses as they help evaluate the financial health and sustainability of the company. By monitoring these ratios, businesses can identify areas where they can improve profitability, control costs, and enhance overall performance. If the […]

Debit vs Credit: An Accounting Reference Guide +Examples

Companies often refer to the name of the vendor from whom they have made purchases rather than the “Account payable” account when recording financial transactions. Instead of keeping all the balances under a single account, it enables them to manage their Accounts Payable balances more efficiently. Understanding debits and credits and account types is essential […]

Types of Credit Memo with Example and Overview

A credit memo is also commonly called a credit memorandum, credit note, memorandum of credit, or refund voucher. This document is made when the person selling goods returns money to the person who bought them. It typically occurs when an overpayment has occurred, whether intentionally or due to an error on the part of either […]

Period Costs Definition And Examples: All You Need To Know

Therefore, we should use variable costing when determining whether to accept this special order. Office rent and other general administrative expenses are treated as period costs. Product costs, on the other hand, are capitalized as inventory on the balance sheet. The rent expense is recorded on the income statement each month whether 1,000 units or 10,000 units […]

Understanding the Difference between Gross Margin and Markup

This way, you can determine which companies come out on top and which ones fall at the bottom. The net profit margin shows whether increases in revenue translate into increased profitability. Net profit includes gross profit (revenue minus cost of goods) while also subtracting operating expenses and all other expenses, such as interest paid on debt […]

why is stock out cost and inventory carry out located in the internal business process in capsim?

You can reduce your carrying costs by minimizing inventory on hand, increasing your inventory turnover, or redesigning your warehouse space. Price, age, MTBF (reliability), and positioning are the four factors they consider when making a purchase. Each market segment has its own set of price expectations. The same outcome can arise when a customer backs […]