Whereas managing accounts payable demands a series of complex time-consuming tasks. In larger organizations, the accounts payable function will require the further refinement of roles to support a broad set of business processes. These are written agreements in which the borrower obtains a specific amount of money from the lender and promises to pay back...
This term also gives the buyer more control over the shipping process and delivery schedule. However, the main disadvantage of FOB Destination is that the seller has to arrange for the transportation, which can be both time-consuming and expensive. FOB (Free On Board) Shipping Point also known as FOB Origin, implies that the buyer takes...
However, in the bank statement, such a balance is showcased as a debit balance and is known as the debit balance as per the passbook. Whereas, credit balance as the cash book indicates bank overdraft or the excess amount withdrawn from your bank account over the amount deposited. Now that we know how to prepare...
We know that the actual hours worked were and are now told that the actual overheads are £102,650. Absorption costing is used when management want to determine the full cost of one unit of output, including a proportion of the overheads. Despite these drawbacks, Absorption Costing is still a popular way to measure production costs....