# Jennifer Archive

## Selling Price Variance

The selling price variance can be defined as the variance between the anticipated selling price and the actual selling price of the product that result in alteration of the expected revenue. The formula of selling price can be shown as under:- Selling Price Variance

## Labor Rate Variance

Labor rate variance is a calculation that is related to the labor rate decided by the management. it can be defined as the difference between the standard labor rate and the actual labor rate that is paid to the employees multiplied by total number

## Contribution Margin per Unit

As we know that contribution margin is a financial calculation that is calculated by subtracting all the variable costs from the revenues. The contribution margin is calculated to pay it for the fixed costs that remain same for all the number of units produced.

## Types of Capacity

The capacity of a work centre, a machine or equipment can be defined as the amount of work done by that particular item. The capacity of a particular item can be measured in three different ways. The first one is called the production capacity

## The Closing Procedure in Accounting

The closing procedure in accounting is carried at the end of each and every accounting period. In this procedure all the journal entries are flushed that were being used to maintain temporary accounts and all the authentic information such as balance is shifted to

## Convertible Securities

Convertible securities are the securities that can be converted by the holder of the security in the equity of the business entity from which the security is purchased. Convertible security is mostly treated as a debt instrument. When conducting accounting for the convertible security

## The Equity Method of Joint Venture Accounting

A joint venture is a type of business or investment that is conducted by more than one investor that acts as business partners to each other. The degree of the control of an investor over the business depends upon the percentage of the investment

## How to conduct Stock Accounting

Stock can be defined as the share of the investor in the equity of the business that allows the investor to claim over the profits and the assets of the business. The owner of the stock can also claim his proportion of dividend when

## Accounting Procedures: The Payroll Procedure

The payroll is associated with employ and the staff and this involve a complete flow of assigning error free payroll to the employees. The payroll procedure is a complex procedure and include following steps:-   Updating Master file of employee Every employee has its

## Accounting Procedures: The fixed Asset recognition procedure

The fixed asset recognition procedure is used in accounting to recognize and categorize fixed assets at an early stage. It is important to recognize fixed assets in early period of accounting as with the passage of time and procedures it become a very complex

## Accounting Procedures: Credit Granting Procedure

It is a procedure of granting credit to the customers on their request. This is a complete procedure that ensures one thing that a firm’s credit is not granted to the customers or other business entities that are unable to pay this credit later.

## The Cost Method of Investment Accounting

The cost method of investment accounting is a method of calculating cost of investment made by an investor. There are two general rules of cost method of investment accounting one state that the investor has no influence over investee if the investor is investing

## Full Disclosure Principle of Accounting

The full disclosure principle states that while designing and maintaining financial statements of an entity you should add all the information that is necessary to develop an understanding regarding the financial matter of the entity. However the implementation and the interpretation of this principle

## The Economic Entity Principle of Accounting

The economic entity principle of accounting is a principle that gives us guideline about storing the financial information of a given entity. This principle states that the financial information of a given entity must be stored separately then the financial information of the owner

## Impairment Accounting

Impairment accounting is the branch of accounting that deals with the cost of the fixed assets and also referred as impairment accounting of fixed assets. The impairment of the fixed arises in a situation where the actual cost of the asset is more than

## Units of Production Depreciation

Units of Production Depreciation The units of production method of depreciation calculate depreciation by using the concept that the depreciation expense of fixed asset is directly proportional to the usage of the asset. This means that the depreciation expense will be more if the

## Sum of Year‘s Digit Depreciation Method

This is the method of calculating the acceleration of depreciation that means that how fast an asset is being depreciated. With the help of this method most of the depreciation of the asset is recognized in the first few years of the useful life

## Production Budget

Production budget can be defined as the estimation or calculation of total number of units of products that must be manufactured in that budgeting period in order to achieve estimated sales. The derivation of production budget is done through forecasted sales and the inventory