The content on this website is provided retained earnings statement “as is;” no representations are made that the content is error-free. For example, even if you retain earnings to invest in a major marketing campaign, you need enough cash on hand to execute...

While accountable plans are certainly the norm, some companies choose to forego one in favor of a nonaccountable plan. A company may choose this route for various reasons, such as a desire to minimize record-keeping. Under a nonaccountable plan, reimbursements count as wages...

This method of costing is essential as per the accounting standards to produce an inventory valuation captured in an organization’s balance sheet. Absorbed cost calculations produce a higher net income figure than variable cost calculations because more expenses are accounted for in unsold products,...