Fix expense in the Assurance Agreement

How to fix expense in Assurance Agreement and save time

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How to Fix expense in the Assurance Agreement

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in this video were going to talk about how to accrue warranty expense in the financial statements so first of all its a good idea to have an understanding what warranty means and basically were talking about some kind of guarantee that a firm is making when you buy the product that there wont be any problems it wont break or if it does theyll actually replace the components that broke or the replace your computer whatever it is that you purchase so its some kind of guarantee about the workmanship so a firm here as you might see if they have a warranty they might have some kind of liability associated with that right because remember a liability is basically an obligation to sacrifice some assets at some point in time so when we have a warranty and we say ok you bought this computer but if it breaks it will replace it well give you another computer well we know theres some kind of obligation here so we have to determine well how do we account for this how do we put this in the

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What are the three types of fixed-price contracts?

Types of fixed price contracts. These special types of fixed price contracts include: Firm fixed-price contracts. Fixed-ceiling-price contracts with price redetermination. Fixed-price contracts with economic price adjustment.

What are the total fixed expenses?

Total fixed costs are the sum of all consistent, non-variable expenses a company must pay. For example, suppose a company leases office space for $10,000 per month, rents machinery for $5,000 per month, and has a $1,000 monthly utility bill. In this case, the companys total fixed costs would be $16,000.

Where are fixed costs on income statement?

Fixed costs are allocated in the indirect expense section of the income statement, which leads to operating profit. Depreciation is one common fixed cost that is recorded as an indirect expense.

Are fixed costs included in operating income?

Operating income is the profit of a business after deducting fixed operating expenses and variable expenses including the cost of running the day-to-day operations such as rent and payroll, depreciation and amortization and the cost of goods sold.

What is fixed pricing arrangement?

A fixed price agreement is an agreement whereby the contractor pays a set amount for the agreed upon work regardless of the ultimate cost to complete the project.

What are fixed costs for a manufacturing company?

Fixed costs can include property taxes, rent, salaries and the cost of benefits for non-sales and management personnel. They are one of three types of costs incurred by most businesses.

What are fixed expenses examples?

Fixed expenses generally cost the same amount each month (such as rent, mortgage payments, or car payments), while variable expenses change from month to month (dining out, medical expenses, groceries, or anything you buy from a store).

What are 3 examples of fixed costs in a budget?

Common examples of fixed costs include rental lease or mortgage payments, salaries, insurance payments, property taxes, interest expenses, depreciation, and some utilities.

Where are variable costs on income statement?

Variable costs appear under cost of goods sold or cost of sales on a companys income statement.

What are fixed expenses examples?

Fixed expenses generally cost the same amount each month (such as rent, mortgage payments, or car payments), while variable expenses change from month to month (dining out, medical expenses, groceries, or anything you buy from a store).

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