Conversion Cost in Accounting

Definition Conversion cost is the cost required to convert raw material into finished goods. It includes direct labor and manufacturing overheads. Explanation Whatever product you … Read more

What is retained earning?

Retained earning is referred to profit retained by the business. It’s the profit that has not been distributed among shareholders; instead, it has been reinvested … Read more

What is Paid-in capital?

Definition Paid-in capital refers to capital raised by the company against the sale of its equity. There are two components of paid-in capital. These components … Read more

Monetary Unit Principle

The monetary unit principle states that all the transactions and business events should be recorded in currency form. It means that a business can record … Read more