Accounting Articles

Cost savings are important for all organizations regardless of their industry, business model, or strategy. While cost savings are especially important for companies that rely on the cost leadership strategy and those in the mature life cycle stage, organizations that pursue differentiation strategy can still benefit from cost saving opportunities. In this article, we will discuss how cost hierarchy can be used to identify opportunities to save costs.

All professions have advantages and disadvantages, and accounting careers are not an exception. What considerations should you take into account when choosing a career in accounting? Is it going to match your personality? Are you ready to invest enough time to prepare for such a career? In this accounting article, we will talk about benefits and challenges of joining the accounting profession.

In this short tutorial, we will compare nominal and effective prices. Then, we will use the concept of effective price to compare suppliers.

You may have heard about cost centers, revenue centers, profit centers, and investment centers. These are typical organizational units (responsibility centers) that companies have these days. A micro (pseudo) profit center is a similar concept, but it differs in its size, purpose and, sometimes, results. In this article, we will talk about micro profit centers in accounting and how they fit and work in organizations.

Transfer pricing is an important topic for top management, accounting and finance departments, and financial auditors, especially among multinational corporations. Transfer pricing is important for at least two reasons: performance evaluation of business units or segments; and tax strategy. There are several methods that can be used to calculate an optimal transfer price. In this tutorial, we review these methods and provide examples.

Intercompany transfer pricing is a large area of attention for top management, chief financial officers, finance directors, auditors, and others within organizations with multiple business units or subsidiaries. In this accounting tutorial, we take a look at what transfer pricing is, why intercompany transfer pricing is important, different transfer pricing methods, and the tax implications of transfer pricing.

Organizations need to estimate costs to make pricing decisions, manage expenditures and investments, forecast litigation outcomes, bid for government contracts, and so on. The common methods used to estimate costs include: account analysis, statistical analysis, and engineering analysis. In this article, we will review an example of account analysis.

Accountants and auditors have a lot of career opportunities. Choosing an accounting job in an industry with better pay may ultimately provide a much better financial return over the course of your career. In this article we will discuss industries with the highest (and lowest) salaries for accountants and auditors.

Cost estimation is a process of estimating (predicting) the cost of a cost object. A cost object is anything we are interested in estimating or calculating a cost for. Examples of cost objects include products, services, projects, activities, business units, product lines, customers, suppliers, and so on. Before we discuss common cost estimation methodologies and tools, we need to understand the reasons for cost estimation.

Key performance indicators are usually associated with organizational departments or units with highly visible outputs (sales, customer services, production, etc.). However, accounting and finance departments also have stakeholders to whom they provide services. It makes sense then to have KPIs for accounting and finance departments to measure and increase their performance.

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Accounting Articles
Accounting Articles include guides and answers. Accounting guides explain application of accounting principles in practice. Great assistance if you are looking for real-life accounting situations. Accounting answers explain particular accounting topics suggested by our website users. Great to find quick answers for specific topics.