Bookkeeping

Complex overhead absorption is when multiple absorptions are required to allocate the cost of the support function. For instance, kitchen expenses first need to be allocated to the procurement department predetermined overhead rate formula (a support department). It’s then further allocated to the departments that use the procurement facility. Implementation of ABC requires identification and […]

The percentage of tax filers in the U.S. that use a professional tax preparer, such as a tax franchise, has been steady over the years. Lack of time and an increasingly complicated tax code are two primary reasons why people and companies tend to seek outside help in preparing their tax returns. The franchisee pays

For depreciation, an accelerated depreciation method will also allocate more tax shield in earlier periods, and less in later periods. However, it is important to consider the effect of temporary differences between depreciation and capital cost allowance for tax purposes. Since tax benefits from debt payments significantly impact the cost of raising capital, it is