“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” – Warren Buffet. Reputation is very important for organizations because it leads to a sustained competitive advantage by making the organization more attractive to its stakeholders (e.g., customers, employees, suppliers, business partners). There are multiple factors that can destroy reputation. One of them is low-quality products and services. In this article, we will discuss costs that are reported as part of cost of quality reporting.

Differences between accounts payable (balance sheet) and expenses (income statement) are sometimes confusing. In this article, we will discuss such differences and show how the two types of accounts can be connected in a journal entry.

Valuation of fixed assets has always been a contradictory issue for standards setters. Accounting for fixed assets at historical costs decreases the likelihood of manipulation, while accounting for fixed assets at fair values provides more relevant information to users of financial statements. In this article we will review US GAAP rules about initial measurement and subsequent accounting for fixed assets, and compare them with the IFRS requirements.

These days companies manufacture a lot of product varieties. Each product requires multiple parts to be created. Manufacturers can produce such parts themselves or they can buy them. Of course, the choice of producing parts or buying them includes various aspects and one of them is cost. In this article, we will discuss make or buy decisions.

Most costs capitalized to manufactured or constructed assets are easy to differentiate from costs that should be immediately expensed. In this article, however, we’ll cover a more obscure cost that should be allocated to constructed fixed assets – interest on the debt used to finance the construction project.

You have probably heard about economies of scale, but may not be sure how they work. In this article, we will discuss when economies of scale take place.

Debt is a common financing tool for most corporations. In this article, we’ll discuss what happens when a company has trouble paying its legal bond obligations.

Revenue recognition is one of the key issues accountants have to deal with on a regular basis. It’s usually straightforward for a merchandiser, but when should revenue be recognized when the company accepts a contract that will take several months to several years to complete? In this article, we’ll discuss two methods for recognizing revenue from contracts.

In this article, we’ll discuss progress billings, one of the facets of accounting for long-term contracts. More than just a record of invoices sent to the client, the amount of billings determine, in part, what appears on the balance sheet.

Corporate bonds are bought and sold in secondary financial markets around the world. This begs the question – can a company purchase its own bonds just like it can purchase its own stock?