Job costing involves the accumulation of the costs of materials, labor, and overhead for a specific job or task. It is an invaluable tool for tracing jobs and examining them to see if their costs can be reduced in later jobs. An alternative use would be to determine if any excess costs can be billed… Read More

What is a variance analysis? The variance analysis is present in managerial accounting and it refers to the investigations of differences between actual and planned behavior. Explanation Variance analysis typically involves the isolation of different causes for the variation in income and expenses over a given period from the budgeted standards. Types of variances These… Read More

A chart of accounts is a list of the accounts identified and made available for recording transactions in the general ledger. The company has the flexibility to change the chart of accounts to suit its needs. This allows it to select the best, including adding or removing accounts where needed. Which accounts are used? Within… Read More