They need to compare the additional costs (such as machinery purchase, maintenance, and labor) against the incremental benefits (increased production, sales, and revenue). incremental cost By analyzing the net impact, they can make an informed decision on whether the expansion is financially viable. From a managerial perspective, incremental costing provides valuable insights into the cost-effectiveness…
The write off amount is debited as the expense in the period approved to write off in the income statement. It does not affect the sales performance of the entity in the current period and the previous period. Bad Debts Expenses for the amount determined will not be paid directly charged to the profit and…
Bookkeeping focuses on recording and organizing financial data, including tasks, such as invoicing, billing, payroll and reconciling transactions. Accounting is the interpretation and presentation of that financial data, including aspects such as tax returns, auditing and analyzing performance. Accounting helps a business understand its financial position to be able to make informed decisions and manage…