The generally accepted accounting principles (GAAP) are a set of accounting rules, standards, and procedures issued and frequently revised by the Financial Accounting Standards Board (FASB). Public companies in the U.S. must follow GAAP when their accountants compile their financial statements. In contrast to […]
Inventory accounting: IFRS® Standards vs US GAAP
The generally accepted accounting principles (GAAP) are a set of accounting rules, standards, and procedures issued and frequently revised by the Financial Accounting Standards Board (FASB). Public companies in the U.S. must follow GAAP when their accountants compile their financial statements. In contrast to […]
The High Low Method: How to Split Variable and Fixed Costs
The first step in analyzing mixed costs with the high-low method is to identify the periods with the highest and lowest levels of activity. We always choose the highest and lowest activity and the costs that correspond with those levels of activity, even if […]