The first and most important part of the income statement is the line reporting sales. Companies need to be consistent every year regarding the time to record sales. For some business, the timing to record sales, the final acceptance by the customer must be performance test or satisfied For example, the advertising agency will be able to meet sales revenue for the campaign prepared for the client When would you like to report it? What if the work is completed and sent to the client for approval? When will customers approve it? When ads are shown on media? Or when the claim is completed? These are issues that the company has to decide to report on sales, must be consistent every year, the timing of the report is written in the financial statements
The next line of the income statement is cost of sales. There are three ways of reporting. One is called "first in first out" (FIFO), the other is the "last in - last out" (LIFO) method and the last is the average cost method. Cost of sales cost is a huge item in the income statement and it can be greatly impacted on the reported bottom line How is reported
Other items in the income statement include inventory write-downs. Business is also an important component of the income statement, which regularly defines losses due to theft, damage and deterioration, and bad debts to carefully inspect the inventory in order to apply cost or lower of the market (LCM) method. NPLs are bought by credit (accounts receivable) to business but owed by customers who are not going to be paid. The timing when bad loans are reported again is important. Would you like to report it before or after collection efforts are tired?
Cost measurement
Measuring profit or net income is the most important thing an accountant does. The next most important thing is to measure the cost. Cost is very important to make a substantial difference in the bottom line of the company you can run the business and effectively manage them.
Knowing the needs of products selling business, what is doing with that product cost is complicated with manufacturing - selling. All steps of the production process need to be carefully tracked from start to finish. Manufacturing costs can not be directly compared with specific products. In order to calculate the total cost of each manufactured product, the accountant devises a method to assign indirect production cost to a specific product. Generally accepted accounting principles (GAAP) are a few guideline measurement products.
As an accountant, such as department or other organizational unit cost of business, in addition to product cost, many other costs need to be determined.
Tsutsu, twinkling, itching, tsutsutsuu tsutsu Itsu hunting hunting tsutsutsu It is the most important to confuse it, but the cost is measured There is no way to set up reporting.Cost accounting can fall anywhere in consecutive or extensive consecutive.The actual cost is the specific cost used to measure the cost They are often entirely dependent on the method.Sometimes several systems for judging sports accuracy are very important again.Total cost of goods or products sold are sales when measuring profit The first, usually deducted from high is the maximum cost.
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