Consolidated and Non-Consolidated Financial Statement

Changing from consolidated to unconsolidated may also raise concerns with investors or complications with auditors so filing consolidated subsidiary financial statements is usually a long-term financial accounting decision. There are however some situations where a corporate structure change may call for a changing of consolidated financials such as a spinoff or acquisition. An unconsolidated subsidiary […]

What is the difference between product costs and period costs?

Administrative activities are the most pure form of period costs, since they must be incurred on an ongoing basis, irrespective of the sales level of a business. Selling costs can vary somewhat with product sales levels, especially if sales commissions are a large part of this expenditure. When creating your budget each year, you might […]