Full cost (FC) accounting allows companies to capitalize all operating expenses related to locating new oil and gas reserves, regardless of the outcome.

The cost and equity methods of accounting are used by companies to account for investments they make in other companies. In general, the cost method is used when the investment doesn't result in a ...

If your company invests in another firm, whether it's to form a business alliance or just to make a profit, that investment must be accounted for on your balance sheet. Accounting rules dictate the ...

Discover what applied cost means in accounting, how it works with allocation rates, and see an example to understand its role ...

Businesses use the high-low method of accounting when they want to accurately calculate the variable and fixed costs for a certain amount of sales. If a business finds that certain sales levels are ...

The high-low method is used in cost accounting to estimate fixed and variable costs based on a business's highest and lowest levels of activity. By focusing on these extremes, the high-low method ...

Not all forms of accounting are the same. Some focus on costs, others on audits and some focus on taxes. While having a solid handle on your business’s finances is essential, how you track business ...

On August, 15, 2020, the Internal Revenue Service (IRS) issued PLR 202033002, in which it addressed whether cost of removal (COR) is “protected” by the normalization rules of section 168(i)(9). COR is ...

Cost accounting in healthcare has never been more important, but is often considered too difficult, expensive or resource intensive for many healthcare organizations. Additionally, other critical ...

In a prior article, I wrote about the appeal of counting the Federal Government as a customer, because of the size of the government’s budget, as well as its creditworthiness. In that article, I ...