Period Costs: What Small Businesses Need to Know
Understanding how costs flow through the financial statements is an essential concept in managerial accounting and cost analysis. Instead, they are included in the cost basis of inventory through cost of goods sold as production occurs. The key difference is product costs can be traced to specific units produced, while period costs cannot. Period costs, […]
Accounts Payable Journal Entry: A Complete Guide with Examples
Either an expense or an asset forms part of the debit offset entry in the case of accounts payable. It is important to note that the accounts payable category represents the short-term obligations of your business. Meaning it represents the aggregate amount of short-term obligations that you have towards suppliers of goods or services. Trade […]
