The smaller the p-value, the less likely the results occurred by random chance, and the stronger the evidence that you should reject the null hypothesis. The implication of the above is that the smaller the value of alpha is, the more difficult it is to claim that a result is statistically significant. On the other hand, the larger the value […]

This analysis aids in decision-making, such as assessing the need for additional financing, managing inventory levels, and monitoring the company’s ability to meet its obligations. The Comparative Balance Sheet is a powerful financial tool that provides stakeholders with a means to assess a company’s financial position and performance over time. A comparative income statement presents the company’s revenue, expenses, and […]

Over the course of the past six months, you have purchased spools of wire. Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. Our Services GAAP sets accounting standards so that financial statements can be easily compared […]

The actual manufacturing overhead cost incurred by the company during 2012 was $108,000. That means that overhead is applied to work-in-progress, finished goods, and cost of goods sold. When the variance is calculated, overapplied overhead that variance exists in each of these accounts, not just cost of goods sold. Therefore, in order to make sure that each of these accounts […]