Contra Accounts Everything You Need to Know

by | Apr 5, 2022 | Bookkeeping

Contra liability accounts are typically used for bonds, notes payable, and other indebtedness. Contra expenses, being a negative expense, ultimately decrease a company’s profit or income. However, they can also help to offset the impact of regular expenses and can...

What is a Direct Material Variance?

by | Mar 9, 2022 | Bookkeeping

To compute the direct materials price variance, subtract the actual cost of direct materials ($297,000) from the actual quantity of direct materials at standard price ($310,500). This difference comes to a $13,500 favorable variance, meaning that the company saves...