Bookkeeping

Content Accumulated Depreciation Depreciation Expense vs. Accumulated Depreciation: What’s the Difference? What is the difference between depreciation expense and accumulated depreciation? Sum-of-the-years’-digits depreciation method Example: Calculating straight-line depreciation for a fixed asset Declining balance method Accumulated depreciation is the cumulative amount of depreciation that has piled up since the initiation of depreciation for each asset. …

Adjusting Entry for Depreciation Expense Calculation Example Read More »

The fixed cost per unit is $7.50, determined by dividing the $150,000 total fixed factory overhead cost by the number of units produced, 20,000. The $7.50 per unit is then multiplied by 15,000, the number of units sold to get $112,500. Absorption costing is a GAAP-compliant method of accounting for all manufacturing costs as product …

Absorption Costing vs Variable Costing: What’s the Difference? Read More »