Examples of fixed costs
No, the insurance company probably does not owe Solar Technology $226,000. The key question is how “cost” was defined in the insurance contract. The $226,000 figure is overstated since it includes elements of selling and administrative expenses as we...
What is the Mid Quarter Convention Method for Depreciation?
Using the half-year convention, a taxpayer claims a half of a year's depreciation for the first taxable year, regardless of when the property was actually put into service. It is assumed that the property being depreciated was placed into service at ...
Materials Quantity Variance Question Accounting Need Help
The difference between the actual quantity at standard price and the standard cost is the direct materials quantity variance. The total of both variances equals the total direct materials variance....