Category: Bookkeeping

What Is a Chart of Accounts? How Does It Works and Examples

You don’t want your chart of accounts to be too granular or too broad. It should have enough subcategorization and detail to be useful — but not so much that nearly every transaction requires a different account. Most businesses will find…

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Break-Even Analysis: How to Calculate the Break-Even Point

Assume that an investor pays a $5 premium for an Apple stock (AAPL) call option with a $170 strike price. This means that the investor has the right to buy 100 shares of Apple at $170 per share at any time…

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8 2: Compute and Evaluate Materials Variances Business LibreTexts

Errors in material requisition, such as over-ordering or under-ordering materials, can cause variances. Mistakes in estimating the required quantity of materials for production runs can lead to discrepancies between actual and standard material usage. The favorable variance of $1,000 indicates that…

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