Only direct costs can be traced to specific cost objects, which are things for which costs can be compiled. This is not the case for indirect costs.| AccountingTools
Inventory cost includes the costs to order and hold inventory, as well as to administer the related paperwork. It impacts inventory levels kept on hand.| AccountingTools
Revenue recognition is the conditions under which an organization can recognize a sale transaction as revenue. This is a five-step process.| AccountingTools
An other comprehensive basis of accounting (OCBOA) is a non-GAAP accounting framework that is used to generate financial statements.| AccountingTools
The GAAP hierarchy defines the level of authority of different accounting pronouncements. When researching an issue, start at the top of the hierarchy.| AccountingTools
An accounting interpretation is a document that is intended to clarify the uses to which an accounting standard can be put.| AccountingTools
Three-way matching is a payment verification technique for ensuring that a supplier invoice is valid. It is used when a supplier invoice is received.| AccountingTools
GAAP is short for Generally Accepted Accounting Principles. It is a cluster of accounting standards and common industry usage.| AccountingTools