Accounting Tools

JUNE 20, 2024

Product cost can also be considered the cost of the labor required to deliver a service to a customer. In the latter case, product cost should include all costs related to a service, such as compensation , payroll taxes , and employee benefits.

Cost Accounting 75

Cost Accounting Financial Statements Financial Reporting Payroll 75

Accounting Tools

JUNE 20, 2023

Related Courses Bookkeeping Guidebook CFO Guidebook New Controller Guidebook What are the Types of Accounting? There are several types of accounting that range from auditing to the preparation of tax returns. Accountants tend to specialize in one of these fields, which leads to the different career tracks noted below.

Accounting 75

Accounting Accounting Financial Statements Auditing 75

Accounting Tools

MAY 12, 2024

If the decision instead involves a number of individuals, then a cost is not controllable from the perspective of any one individual. Also, if a cost is imposed on an organization by a third party (such as taxes), this cost is not considered to be controllable.

Financial Analysis 75

Financial Analysis Cost Accounting Tax Accounting 75

Accounting Tools

OCTOBER 11, 2023

Requires the collection of time worked information from employees , which is then used to produce gross wage information, tax deductions, and other deductions, resulting in net pay to employees. Additional Accounting Topics The presented basics of accounting only note the barest outline of the functions performed by the accountant.

Accounting 75

Accounting Accounting Record Keeping Purchase Order 75

Accounting Tools

JUNE 7, 2023

Related Courses Activity-Based Costing Cost Accounting Fundamentals What is a Cost Allocation? Cost allocation is the process of identifying, aggregating, and assigning costs to cost objects. A cost object is any activity or item for which you want to separately measure costs.

Cost Accounting 75

Cost Accounting Financial Reporting Tax Accounting 75

Accounting Tools

APRIL 6, 2024

Financial Statements Production A reporting group within the department creates adjusting journal entries to bring the company's initial financial results into compliance with the applicable accounting framework , writes footnotes to accompany the financial statements , and releases financials following the end of each reporting period.

Accounting 75

Accounting Accounting Financial Statements Budgeting 75

Accounting Tools

AUGUST 7, 2024

Burden Rate for Labor Payroll taxes and benefits are added to an employee's wages to arrive at the total cost of labor for that individual. For example, if the annual benefits and payroll taxes associated with an individual is $20,000 and his wages are $80,000, then the burden rate is $0.25 Related Article Factory Burden

Payroll 76

Payroll Cost Accounting Financial Reporting Billing 76

Accounting Tools

NOVEMBER 1, 2023

The reports are highly customized to the needs of each entity, and may cover such topics as the sales of certain product lines, investigations of cost variances , sales returns , and an analysis of overtime incurred. Tax reports are issued to several government entities.

General Ledger 75

General Ledger Accounting Accounting Financial Statements 75

Accounting Tools

SEPTEMBER 9, 2023

Related Courses Cost Accounting Fundamentals A fixed cost is a cost that does not change over the short-term, even if a business experiences changes in its sales volume or other activity levels. This is the cost of funds loaned to a business by a lender. Property taxes. Interest expense.

Cost Accounting 75

Cost Accounting Tax Accounting Accounting 75

Accounting Tools

JULY 14, 2024

Terms Similar to Direct Expense Direct expense is also known as direct cost. Related Articles Incremental Cost Marginal Cost Relevant Cost Variable Cost

Payroll 52

Payroll Cost Accounting Tax Accounting 52

Accounting Tools

JULY 17, 2023

Inventory costs can be classified as follows. Ordering Costs Ordering costs include the wages of the procurement department and related payroll taxes and benefits, and possibly similar labor costs by the industrial engineering staff, in case they must pre-qualify new suppliers to deliver parts to the company.

Cost Accounting 70

Cost Accounting Payroll Auditing Accounting 70

Accounting Tools

OCTOBER 11, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals Operations Management What is Total Manufacturing Cost? Total manufacturing cost is the aggregate amount of cost incurred by a business on its production operations within a reporting period. The result is the cost of direct labor.

Cost Accounting 75

Cost Accounting Payroll Budgeting Billing 75

Accounting Tools

OCTOBER 23, 2023

Related Courses Bookkeeping Guidebook Cost Accounting Fundamentals The difference between cost and expense is that cost identifies an expenditure , while expense refers to the consumption of the item acquired. Thus, a cost converts to an expense as soon as any related revenue is recognized.

Cost Accounting 75

Cost Accounting Billing Bookkeeping Financial Accounting 75

Accounting Tools

JUNE 3, 2024

What is Total Labor Cost? Total labor cost is the aggregate cost of the hours worked by all employees , plus all related payroll taxes and benefits. Total labor cost is comprised of a number of line items, which include the following: Direct labor cost. Payroll taxes.

Payroll 40

Payroll Cost Accounting Budgeting Tax 40

Accounting Tools

DECEMBER 19, 2023

There are also a number of business transactions that are non-repetitive in nature, and so require the use of journal entries to record them in the accounting records. The fixed asset accountant , general ledger clerk , and tax accountant are most likely to be involved in the use of journal entries.

General Ledger 75

General Ledger Accounting Accounting Financial Statements 75

Accounting Tools

JULY 15, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals How to Audit Inventory What is COGS? COGS is the cost of those goods associated with product sales. The main categories of costs included in COGS are direct materials , direct labor , factory overhead , and production supplies.

Payroll 75

Payroll Auditing Cost Accounting Accounting 75

Accounting Tools

OCTOBER 22, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals What is a Job Cost Sheet? A job cost sheet is a compilation of the actual costs of a job. The report is compiled by the accounting department and distributed to the management team, to see if a job was correctly bid.

Payroll 40

Payroll Cost Accounting Computation Billing 40

Accounting Tools

SEPTEMBER 28, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals What is Actual Overhead? Actual overhead is indirect factory costs that have been incurred. This is essentially all factory costs, except for direct material and direct labor costs.

Cost Accounting 40

Cost Accounting Tax Accounting Accounting 40

Accounting Tools

AUGUST 8, 2023

Related Courses Cost Accounting Fundamentals What are Manufacturing Costs? Manufacturing costs are the costs incurred during the production of a product. These costs include the costs of direct material , direct labor , and manufacturing overhead.

Cost Accounting 40

Cost Accounting Tax Accounting Accounting 40

Accounting Tools

SEPTEMBER 19, 2023

Related Courses Cost Accounting Fundamentals What is Original Cost? Original cost is the price paid to initially acquire an asset. This cost is considered to include the cost to buy an asset, transport the asset to where it is intended to be used, install it, and test it.

General Ledger 40

General Ledger Cost Accounting Tax Accounting 40

Accounting Tools

DECEMBER 28, 2023

The cost of both types of indirect labor can be fully loaded with the costs of benefits and payroll taxes for financial analysis or cost accounting purposes, since these additional costs are closely associated with the indirect labor positions.

Financial Analysis 40

Financial Analysis Cost Accounting Payroll Tax 40

Accounting Tools

JULY 12, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals What is Factory Burden? Factory burden is those costs incurred in the production process, other than direct costs. These costs are accumulated into cost pools at the end of each reporting period, and then allocated to units of production.

Accruals 40

Accruals Financial Statements Cost Accounting Tax 40

Accounting Tools

JULY 20, 2024

Or, the incremental cost of shutting down a production line includes the costs to lay off employees, sell unnecessary equipment, and convert the facility to some other use. As a third example, the sale of a subsidiary includes the legal costs of the sale. Bringing in the new hires would eliminate the overtime being worked.

Financial Analysis 40

Financial Analysis Payroll Cost Accounting Tax 40

Accounting Tools

OCTOBER 19, 2024

Direct labor costs are most commonly associated with products in a job costing environment, where the production staff is expected to record the time they spend working on various jobs. These are also considered to be direct labor costs. What is Included in Direct Labor Cost?

Payroll 40

Payroll Cost Accounting Billing Tax 40

Accounting Tools

OCTOBER 18, 2024

This can mislead the investment community regarding the true profitability of the business.

Auditing 75

Auditing Accounting Accounting Tax 75

Accounting Tools

AUGUST 30, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals What is Direct Labor? Direct labor is production or services labor that is assigned to a specific product, cost center , or work order. Related Articles Direct Labor Cost Indirect Labor The Difference Between Direct and Indirect Labor

Cost Accounting 40

Cost Accounting Payroll Billing Tax 40

Accounting Tools

JULY 9, 2023

Related Courses Activity-Based Costing Cost Accounting Fundamentals What is a Fixed Cost? A fixed cost is a cost that does not increase or decrease in conjunction with any activities. Examples of other fixed costs are insurance, depreciation , and property taxes.

Accruals 40

Accruals Financial Analysis Cost Accounting Tax 40

Accounting Tools

JUNE 2, 2024

If a company is in the services business, then direct labor is likely to be the largest component of its total variable cost. This is because billable hours comprise most of the cost of goods sold, along with the related costs of payroll taxes and employee benefits.

Financial Analysis 40

Financial Analysis Cost Accounting Payroll Tax 40

Accounting Tools

JULY 27, 2023

Related Courses Credit and Collection Guidebook Bookkeeping Guidebook Budgeting CFO Guidebook Cost Accounting Fundamentals New Controller Guidebook Payables Management Payroll Management Project Accounting Someone wanting to enter the accounting field can choose to train for a number of possible positions.

General Ledger 40

General Ledger Accounting Accounting Financial Statements 40

Accounting Tools

NOVEMBER 1, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals How to Audit Inventory What is Direct Material Cost? Direct material cost is the cost of the raw materials and components used to create a product. The total is the direct material cost of the product.

Cost Accounting 40

Cost Accounting Budgeting Billing Auditing 40

Accounting Tools

NOVEMBER 1, 2023

Related Courses Constraint Management Cost Accounting Fundamentals What is Capacity Cost? Capacity costs are expenditures made to provide a certain volume of goods or services to customers. Each successive shift constitutes an incremental capacity cost.

Cost Accounting 40

Cost Accounting Tax Accounting Accounting 40

Accounting Tools

JUNE 21, 2023

Related Courses Cost Accounting Fundamentals Gross cost is the entire acquisition cost of an object. There may be little or no cost assigned to the byproduct, so any cash received from its sale will likely result in a net cost that is negative (that is, a profit is generated).

Cost Accounting 40

Cost Accounting Tax Accounting Accounting 40

Accounting Tools

MAY 21, 2023

Related Courses Activity-Based Costing Cost Accounting Fundamentals What is a Standard Labor Rate? If there is only a single standard labor rate, it should be based on a weighted average of the fully burdened labor costs of those employees most likely to be engaged in the related work.

Cost Accounting 40

Cost Accounting Payroll Billing Tax 40

Accounting Tools

NOVEMBER 2, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals What is a Job Order Costing System? A job order costing system accumulates the costs associated with a specific batch of products. Material costs, where inventory items are relieved from stock and charged to a job as used.

Payroll 40

Payroll Billing Cost Accounting Invoicing 40

Accounting Tools

JULY 13, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals What is Full Costing? Full costing is used to determine the complete and entire cost of something. The concept is most commonly used for recording the full cost of inventory in the financial statements.

Financial Reporting 40

Financial Reporting Cost Accounting Financial Statements Collections 40

Accounting Tools

NOVEMBER 1, 2023

Related Courses Cost Accounting Fundamentals What is a Labor Variance? A labor variance arises when the actual cost associated with a labor activity varies (either better or worse) from the expected amount. Related Articles Accounting for Variances Labor Standard

Budgeting 40

Budgeting Payroll Cost Accounting Tax 40

Accounting Tools

AUGUST 25, 2023

The rate is calculated by adding together the annual cost of all benefits and payroll taxes paid, and dividing by the annual wages paid. Related Articles Salary and Fringes For example, if the total benefits paid were $25,000 and the wages paid were $100,000, then the fringe benefit rate would be 25%.

Payroll 40

Payroll Tax Cost Accounting Accounting 40