Freight On Board Understanding How FOB Works in Shipping

Simultaneously, while the treadmills have not yet been delivered, the buyer has now officially taken responsibility for the goods. The buyer should record an accounts payable balance and include the treadmills in their financial records. The fact that the treadmills may take two weeks to arrive is irrelevant to this shipping agreement; the buyer already … Read more

Cost of Goods Manufactured COGM Formula + Calculator

Direct material is the cost of raw materials used in the manufacturing process which are inextricably linked to the final product. If your manufacturing company makes screws, the raw material is steel wire purchased from a supplier. Direct labor refers to employees directly involved in production tasks, while indirect labor includes employees who support production … Read more

Retained Earnings: Calculation, Formula & Examples

Retained earnings are an equity balance and as such are included within the equity section of a company’s balance sheet. Retained earnings are important because they can be used to finance new projects or expand the business. Reinvesting profits back into the company can help it grow and become more profitable over time. When a … Read more

SG&A: SG&A vs COGS, definitions, calculation, types and examples

That’s a good process to know, and investors look closely at operating income. Selling, general, and administrative (SG&A) expenses are often called overhead costs, or the indirect cost of doing business. It’s not an expense required to produce your company’s product or service, but you need to incur SG&A to stay in business and turn … Read more

7 Bookkeeping Tips for Small Ecommerce Businesses 2023

High-caliber accounting software provides a clear and instant view of your business’s financial health, making your decision-making process significantly more straightforward. If you are selling things online using ecommerce platforms, an accounting package that integrates smoothly with your ecommerce selling platforms is essential. You don’t want to have to enter business expenses or bank transactions manually. … Read more

7 3 Analyze and Journalize Transactions Using Special Journals Principles of Accounting, Volume 1: Financial Accounting

Table 7.1 summarizes the typical transactions in the specialjournals previously illustrated. You’ll also need to increase your Revenue account to show that your business is bringing in the amount the customer owes. My Accounting Course  is a world-class educational resource developed by experts to simplify accounting, a special journal that is intended only for credit … Read more