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By electronic fund transfer the collection float can be completely removed the other benefit of electronic fund transfer is instant updating of accounts and reporting of balances as and when needed without any delay.
2) Payment Float: Cheques given but not paid through the bank at any specific time is termed as payment float. Companies can make use of payment float, through issuing cheques, even though it means as per books of account an overdraft beyond permissible bank restrictions. The company must be very careful in playing such float in view of stringent provisions about the dishonoring of cheques and loss of reputation etc.
Innova uses 1,056 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufacture the component are as follows. Direct material
The Role of Computers in Simulation Computers can be used to: 1) To generate the random numbers 2) To simulate thousands of trials. This is done extremely fast, accuratel
Transfer Pricing Transfer pricing can contribute directly to the process of departmental performance measurement and indirectly to the measurement of product performance. A
The other source of spontaneous short-term financing is the accrued expenses which arise by the general conduct of business. An accrued expense is an expense which has been incurre
what are the different arguments against direct materials, direct labor, and factory overhead
Hornsby Manufacturing has four categories of overheads. The four categories and the expected overhead costs for each category for next year are as follows: Maintenance $140,000
After going through this section, you must be capable to: Know the concept and characteristics of working capital; Identify with the difference among net working capital
1. In common, accounting period is the time period reflected by a series of financial statements. 2. In terms of taxation, it is twelve-month period a taxpayer uses to know
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Determine the Distribution cost and Research cost Distribution cost: The cost of sequence of the operations which begin with making the packed product available for dispa
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