Three stages of production in the economy

The production includes the set of operations required to transform raw materials and other inputs into finished goods for consumers or semi – processed for use in other production phases. Adding value to inputs and merchandise. When it is produced, a raw material is taken and with the investment of labor, machinery and energy, value … Read more

How to calculate unit cost

The unit cost calculation is especially useful for companies that produce or market a large number of the same item. The unit cost serves as an input for other calculations such as the profit per unit, the comparison with the sale price, the breakeven point or simply to be compared with the budgeted cost and … Read more

How to calculate the rent increase by the CPI

Renting a second apartment or house is one of the most used operations worldwide to obtain a stable monthly income. Although owning properties is in itself a protection against inflation, when they are unoccupied they originate maintenance expenses that can only be avoided by renting the property to a third party. In this way, the … Read more

What is private accounting?

Accountants private perform many of the usual functions like any other counter. In this topic we will analyze What is private accounting ? And what is the difference between the other types of accounting where professionals such as internal auditors and public and government accountants practice. The private accounting is that is responsible for analyzing … Read more

Advantages and disadvantages of using a standard cost system

Cost systems can be based on control of production, sourcing of products, or cost elements. Companies calculate product costs to determine inventory values, to calculate sales prices, and to determine cost of goods. goods sold, and that is why they resort to these systems and their methods. At the end of the day, operating expenses … Read more

Effective Communication and Decision Making

Effective communication and decision making are critical when working in a group setting. It is important to develop communication skills such as active listening, clear written communication and effective meetings. This will ensure that the group achieves its goals and solves the relevant problems in a time efficient manner. These skills are important in today’s … Read more

The difference between Profit and Profit Margin

It is very common for the terms profit (also known as profit or profit) and profit margin to be used synonymously, but they are not. The profit or result is measured in terms of monetary figures, while the profit margin is expressed as a percentage of sales; Both measures are complemented for the purpose of … Read more

How to Calculate Direct Labor Cost Per Unit

The task of managing a company requires the management of information, usually the analysis of costs and benefits as well as income, an assessment that allows you to establish the level of profitability of your company. Marketing and sales promotion activities allow you to boost income levels to meet managerial expectations. These results define the … Read more

Advantages and disadvantages of the inventory system “Just in Time”

The “just-in-time” (JIT) inventory system was developed to support the excellent production movement of the Toyota Motor Company. The overall goal of the system is to strictly control the purchase and delivery of raw materials to minimize storage, inventory, and fixed costs. The delivery of raw materials is scheduled based on production needs, such as … Read more

How to calculate your net compensation from your gross compensation

The gross and net remuneration are two financial terms that allow you to understand how much money. The gross remuneration is the amount of money your employer pays you while net remuneration is the amount of money you receive from then apply the corresponding deductions. In this sense, calculating your gross and net compensation is … Read more

What are the main features of a budget?

A budget is a financial document of a foresight nature, aimed at projecting future income and expenses. It is widely used by companies, no matter their size, but also by households, to have forecast and expense management. A master budget or operating budget represents for companies a framework of action to follow and a set … Read more

Types of Auditors

Different types of audits are carried out regularly in all companies in the world to review the management of their accounting processes during a certain period of time. This in turn requires the hiring of different types of auditors who will work on the accounting books, where the financial movements of the company or organization … Read more

Accounting for documents receivable

Companies regularly extend credit to their clients by promising to pay the bill at a future date. This credit is made in two main ways: accounts receivable and documents receivable. The receivables represent promises of payment from customers on a certain date, which occurs shortly after the purchase have been made, while receivables represent clients … Read more

How to take care of your money in five steps

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Controlling card spending, avoiding overdrafts and knowing where the money is going is a good start to managing household finances The first weeks of the year come loaded with good intentions. One of the most common is to increase the ability to save and, above all, to improve the domestic economy. This goal is not … Read more

20 Practical Tips To Take Care Of Your Money – Plan Your Finances

On many occasions we have mentioned how important it is to know how to properly manage our money, and protect the fruit of our work against unforeseen events. For this reason, below we give a list of 20 things we can do now to take care of our Personal Finances and so that we can … Read more

11 Financial Habits of Successful Women

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Success comes in many shapes and forms and it is a fact that does not happen overnight. But behind every successful woman are financial habits that keep her on track and financially secure. Because she knows that she is in control of her finances and that her finances do not control her. I take money … Read more

Difference between cost accounting and financial accounting

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Companies mainly use two types of accounting: financial accounting and cost accounting. Both have a very high importance and are very useful in the management of a company. They present relevant differences between them that we are going to see below, separated in different aspects. We are going to see the differences between cost accounting … Read more

What Does Aflac Cover?

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Aflac is an insurance which will cover the cost which is not covered by general insurance. It provides supplemental insurance which means the benefit is paid directly to the insurer when he is in hospital. It will pay the benefits in cash to the people insured by the company. The benefit of this insurance is … Read more

Financial Risk (What Is It, Types Of Risk And Ways To Reduce It)

In the business world, knowing how to financially manage the company is vital for its development. To do so efficiently, it is necessary to be clear about the financial risk to which the company is exposed. If this type of risk is not carefully considered and valued, the company may have significant losses, it is … Read more

What is a Financial Analysis

The financial analysis seeks to obtain some measures and relationships that facilitate decision making certain tools and techniques for several purposes, among which we can mention the following: Get a preliminary idea about the existence and availability of resources to invest them in a given project. It helps us to get an idea of ​​the … Read more

More annual income is generated in Canada than in the United States

It is no secret that the economy in Canada is quite favorable mainly for the middle class, however, it has surely gone through the minds of many to compare what can be gained compared to the southern neighbor, the United States. Well, the news is that Canadians have higher incomes than Americans. This was confirmed … Read more

5 technological tools that every accountant should have

If we can be sure of something, the tax and accounting procedures always change. Since the use of electronic invoicing or digital payroll was approved, companies have been forced to adopt technologies that allow accountants to be more effective in their daily work. Given this scenario, it becomes necessary for companies and independent professionals to … Read more

Devaluation (Causes, Consequences, Types, and Examples)

The currency does not have a real value, it has a repressive value of the wealth of the country from where it is, that is why when it comes to monetary devaluation, the decrease in the nominal value of a specific currency must be understood when compared to a currency of another country. There are … Read more

Audit – Definition, what it is and concept

In the economic field, auditing involves evaluating and measuring in depth the characteristics of an organization in order to show its weaknesses and strengths taking into account a number of factors, such as efficiency and profitability. Audit means the action of analyzing in an exhaustive and detailed way different characteristics of a business or a … Read more

Financial capital (what is it, characteristics and elements)

The financial capital is the total amount of assets a company has, first subtracting liabilities to assets, and the resulting figure is the heritage obtained. Keep in mind that financial capital is the amount of money invested in various financial entities and not in production processes. The money previously invested in financial institutions would be … Read more

Operational audit – Definition, what it is and concept

The operational audit is that focused on thoroughly evaluating the use of the resources that an organization has and if it efficiently and in a quality way achieves its set objectives. Through the performance of an operational audit companies and institutions of all kinds have the possibility to study whether they work in a manner … Read more

Financial expenses (What are, Types and Importance)

The financial expenses are those that are produced by third party financing agents or by charging various services for certain corporate finance activities such as the production of this. Companies or people with businesses use this tool regularly to start up their commercial or productive activities. The financial expenses are being resources or money from … Read more

Financial Intermediaries (What are, Types and Functions)

The financial intermediaries are specialized institutions that bridge in financial operations. As the name implies, its main function is to be intermediaries between two parts of the market, those who wish to save their funds and invest them, and those who wish to apply for a loan. They usually raise funds in the short term … Read more