Accounting

What are the Controllable Profits?

Meaning of controllable profits For managerial evaluation, there are different responsibility centers inside any organization. These include revenue center, profit center, cost center, and investment center. Controllable profits are a concept wherein the performance of divisional managers is evaluated based upon the responsibility center in which they have been assigned. Controllable profits mean revenue minus

What are the Controllable Profits? Read More »

What is Budget Padding?

Meaning It means inflating the amount in a budget so that any unexpected cost of the project can be recovered in the future while executing the projects. It is a method of artificially increasing the amount in expected project cost. It’s a deliberate process where the actual forecast by the budget preparer differs from the

What is Budget Padding? Read More »

Accounting for Consignment Inventory: Definition, Example, and Journal Entries

What is a Consignment Inventory? Consignment inventory refers to an inventory arrangement that results from an agreement. This agreement mostly specifies that one party must hold inventory for another party for a specific purpose. In this regard, the main objective of the holder is to sell the inventory on the behalf of the initial owner

Accounting for Consignment Inventory: Definition, Example, and Journal Entries Read More »

Scroll to Top