Adam Hill, author at Online Accounting

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Adam Hill started accounting and trading back in 2007. He has achieved quite a lot of success. Now he decided to open his blog. Here he publishes articles on accounting. For any questions of interest, please contact us by e-mail: admin-hill@online-accounting.net

direct income vs indirect income with examples?

Jul 7, 2020 Bookkeeping by Adam Hill

The steel and bolts needed for the production of a car or truck would be classified as direct costs. However, an indirect cost would be the electricity for the manufacturing plant. Although the electricity expense can be tied to the facility, it can'...

The direct and the indirect method for the statement of cash flows

Jul 7, 2020 Bookkeeping by Adam Hill

Under the direct method, the only section of the statement of cash flows that will differ in the presentation is the cash flow from the operations section. The direct method lists the cash receipts and cash payments made during the accounting period....

Direct materials cost

Jul 6, 2020 Bookkeeping by Adam Hill

Accountants typically use standard costing to estimate the value of direct materials, direct labor and manufacturing overhead in work-in-progress inventory. Direct materials are typically referred to as a cost instead of an actual good or piece of in...

Material variance

Jul 6, 2020 Bookkeeping by Adam Hill

To compute the direct materials price variance, subtract the actual cost of direct materials ($297,000) from the actual quantity of direct materials at standard price ($310,500). This difference comes to a $13,500 favorable variance, meaning that the...

Departments to manage the purchasing

Jul 6, 2020 Bookkeeping by Adam Hill

For instance,just-in-timeinventory systems can reduce inventory costs because only the inventory needed for production is ordered and produced. Direct materials are those that are used directly in the production process and are reflected in the final...