Knowing the overhead costs is essential to any manufacturer in calculating the total cost of manufacturing of a product and hence to set a profitable selling price. The buyer should always know what is the overhead cost and indirect cost included in the product as a percentage of the cost of the product that the …
Continue reading Direct Costs, Indirect Costs (Overheads and G&A)
A capitalized cost is an expense that is added to the cost basis a fixed asset on a company's balance sheet. Capitalized costs are incurred when building or financing fixed assets. Capitalized costs are not expensed in the period they were incurred but recognized over a period of time via depreciation or amortization. A fixed …
Continue reading Whether to Expense or Capitalize An Expenditure
In accounting, there are various accounts such as account payables, account receivables, cash, etc. In some of these accounts, the value of a company comes in (asset account) and in some of these accounts the value of the company goes out (liability account). Finally, all the balances from the assets and liabilities go onto the …
Retail excites me a lot because it is a simple business of buying and selling goods and yet it covers almost every complexity under the sun. It has a complex supply chain from raw material to finished goods, yet seeming so simple and convenient when we add items to our shopping cart in offline and …
Balance Sheet of a Company: A balance sheet gives the picture of assets and liabilities of the company as on the last minute of 31st March YYYY. So, many times the balance sheet of a company appears better than what it is in real. Sometimes, companies will request all debtors to clear the outstandings just …
Profit and Loss Account Statement (P&L Statement): 1. Profit = Sales - Costs 2. So, you basically have two entities: Sales and Costs. The other names used to refer to Sales are: Fees, Income, Sales, Revenue, and Turnover. The other names used to refer to Costs are: Expenditure. 3. Classification of Costs or …
Brandalyzer 
You must be logged in to post a comment.