Author Archives: Store Manager

2 5 Under- or Over-applied Overhead Managerial Accounting

Hence, we need to credit the manufacturing overhead account instead to zero it out. On the other hand, the underapplied overhead is the result of the applied manufacturing overhead cost is less than the actual overhead cost that incurs during the accounting period. Another strategy involves leveraging technology for real-time data analysis and monitoring. Advanced […]

Payback Period Explained: Formula, Calculation and Importance

While the payback period focuses solely on the time it takes to recover the initial investment, IRR provides insight into the overall return on investment over time. Investors often use IRR in conjunction with the payback period to assess both the speed and profitability of an investment. Your payback period calculates the time it takes […]

Is a Discount an Income or Expense?

The process involves specific adjustments that ensure transparency and compliance with accounting standards. Understanding how to navigate these adjustments is essential for maintaining accurate books and providing clear financial insights. Here are some practical ways to lower contra revenue, improve your discount strategies, and make sure your policies match industry standards. A discount received is […]

EBITDA Margin: Definition, Formula and How to Calculate

These outflows are crucial for a company’s financial stability and long-term sustainability. Using EBITDA margin offers a transparent look at financial health, indicating operational efficiency and profitability ratios beneficial to stakeholders. EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization, offers a clear picture of a company’s profitability without the noise of financing and accounting […]

Cash Disbursement Journal: Definition & Examples

Your cash disbursement journal is a record of all of your business’s outflowing cash. By itemizing all cash payments, this journal helps businesses organize their outgoing cash records. A cash disbursement journal refers to a financial record maintained by an organization’s accountants containing the details of all expenditures paid by the firm. Is a cash […]