Archive for the 'Bookkeeping' Category

Percentage of Completion vs Completed Contract: What’s the difference?

Note that as of 2024, businesses over $30 million in annual revenue must move to accrual accounting per IRS publication 538. The cost-to-cost method assumes that revenue will be proportional to the incurred costs. If the project progresses steadily and estimation is reliable, ongoing basis recognition may be the preferred choice for providing detailed and […]

What Are the Different Types of Preference Shares?

However, the price of the convertible preferred will rise to capture the price rise of the common stock. A company might choose to call back preferred stock if interest rates fall below the yield of the stock, allowing them to reissue stock at lower yields. If they do so, investors will lose both the income […]

Incremental Analysis: Definition, Types, Importance, and Example

Conversely, fixed costs, such as rent and overhead, are omitted from incremental cost analysis because these costs typically don’t change with production volumes. Since incremental costs are the costs of manufacturing one more unit, the costs would not be incurred if production didn’t increase. Incremental costs are usually lower than a unit average cost to […]