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In intro accounting class we learn that depreciation is a cost allocation concept that helps us adhere to the expense matching principle. We break an asset’s cost up and recognize it over its useful life. Straight line depreciation is calculated by subtracting salvage (residual) value from acquisition cost and dividing this by useful life. #accounting #study #explained #depreciation

In intro accounting class we learn that depreciation is a cost allocati…

4.9K views1 month ago

TikTokaccountingprofessor

Replying to @i in intro accounting class we learn three inventory cost flow assumptions (specific identification tracks each item and is therefore not an assumption): FIFO (first-in first-out), LIFO (last-in first-out), and average cost. We use these to compute our cost of goods sold. Even though perpetual inventory systems are much more common for large companies, I illustrate these cost flow assumptions using a periodic system. #accounting #study #explained #inventory #lifo #fifo #averagecost

Replying to @i in intro accounting class we learn three inventory cos…

5.2K views1 month ago

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Cost Accounting System | Definition, Types & Examples

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