Bookkeeping

You will need the mean of the data set, arithmetic difference, and many additions and subtractions to find variance. Sample variance uses n-1 in the denominator instead of n to correct for bias when estimating population variance from a sample. This makes sample variance slightly larger than population variance in most cases. Population variance is…

This variance solver also finds the standard deviation, the mean, and the statistical sum of squares in one click. Variance calculator is used to find the actual distance of the data values from the mean. This calculator provides the result of the mean, standard deviation, and the sum of squares along with steps. Choosing the…

Calculate depreciation expense for the years ending 30 June 2013 and 30 June 2014. E.g. rate of depreciation of an asset having a useful life of 8 years is 12.5% p.a. Now that you know the difference between the depreciation models, let’s see the straight-line depreciation method being used in real-world situations. Recording straight-line depreciation…

This depreciation method is appropriate where economic benefits from an asset are expected to be realized evenly over its useful life. No, depreciation is a non-cash expense, but it lowers your taxable income, which can indirectly save money by reducing taxes owed. Develop a depreciation schedule to visualize how assets lose value over time. This can help…

Manufacturers, with a ratio of 4 to 6, focus on producing goods while managing stock levels to meet demand. E-commerce businesses, on the other hand, often aim for a higher turnover of 8 to 12, reflecting the rapid pace of online sales and consumer behavior. You’ll discover practical strategies for improving your ratio, explore real-world…

Manufacturers, with a ratio of 4 to 6, focus on producing goods while managing stock levels to meet demand. E-commerce businesses, on the other hand, often aim for a higher turnover of 8 to 12, reflecting the rapid pace of online sales and consumer behavior. You’ll discover practical strategies for improving your ratio, explore real-world…

That said, low turnover ratios suggest lackluster demand from customers and the build-up of excess inventory. This measurement also shows investors how liquid a company’s inventory is. Inventory is one of the biggest assets a retailer reports on its balance sheet. This measurement shows how easily a company can turn its inventory into cash. A low…

Under GAAP, it is expected for the accountants to apply a conservative approach in accounting – make sure that the profits and assets of the company are not valued more than they should. When it comes to estimating the ending value of an inventory or accounts receivable, what accountants use for a conservative estimate or…

The net realizable value (NRV) is used to appraise the value of an asset, namely inventory and accounts receivable (A/R). The Net Realizable Value (NRV) represents the profit realized from selling an asset, less the estimated sale or disposal costs. NRV is also used to account for costs when two products are produced together in a joint…

Freight in and freight out are integral concepts in supply chain management, impacting various aspects of a business’s operations. As supply chain management evolves, the efficient management of freight in and freight out will remain a key factor in achieving business success and maintaining a competitive edge. Freight out refers to the cost of transporting…