Cost Accounting

Cost accounting or managerial accounting matches the respective detail costs to a job or function to help management determine actual against a standard. If properly enacted, the program provides a continuous positive feedback loop to maximize profits for the division or company.

Class Accounting With QuickBooks

Class Accounting

Class accounting is one of the options available with QuickBooks software.   Most accountants and bookkeepers misunderstand its purpose and how to properly implement this wonder tool of accounting.   If you are considering using class accounting and want to have a full comprehensive understanding, this is the article for you. 

Cost Codes – Subset of Item Codes

Cost Codes

Cost codes are unique identifiers assigned to items in an inventory sold individually or as a part of an assembly. The goal is to track the final outcome of the item(s) sold against the original estimated cost of the item. It is used in both financial and cost accounting.

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Bookkeeping – Cost Accounting (Lesson 77)

Cost Accounting

The science of calculating the actual costs of manufacturing is known as cost accounting, a.k.a managerial accounting.  Unlike traditional accounting which records economic transactions after they occur, cost accounting identifies all underlying costs associated with the production of a single unit.

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Project Accounting Principles for Residential Contractors

Project Accounting Principles

Almost every residential contractor I had as a client had no clue of their financial position as it related to any one of their residential contracts.  None of them knew whether the project was fully funded, over funded or unfunded at any point in the construction process.

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House Flipping – Business Dynamics

Flipping Houses

There is a lot of misinformation about flipping real estate on the internet and on television.  I’m mostly shocked by the lack of detailed information related to the entire cost of the project and the adjusted sales price.  I have yet to read a single article that goes into the details of the business dynamics of flipping houses.

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Variable Costs

Variable Costs

Variable costs are those business related expenditures that vary in proportion to production.  The most common examples of variable costs include raw materials, labor, packaging and distribution expenses related to producing and delivering the product or service.

QuickBooks in Construction Accounting – Transfer Work in Process to Cost of Goods Sold

QuickBooks does not have a seamless subrountine to transfer costs from construction in process control accout to the profit in loss statement's cost of construction section. Therefore, the accountant has to export data to a spreadsheet and then sum the respective functional costs of materials, subcontractors, labor, land etc. and then make a general journal entry to complete the transfer. This article explains this process in detail.

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