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 per machine hour used.

Payroll 76

Payroll Cost Accounting Financial Reporting Billing 76

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 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. Definition of Expense Expense is a cost whose utility has been used up; it has been consumed.

Cost Accounting 75

Cost Accounting Billing Bookkeeping Financial Accounting 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

MAY 15, 2023

Related Courses Activity-Based Costing Cost Accounting Fundamentals Cost Management Guidebook What is Cost Structure? Cost structure refers to the types and relative proportions of fixed costs and variable costs that a business incurs. Administrative overhead Variable costs.

Customer Service 75

Customer Service Cost Accounting Payroll Billing 75

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

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

JULY 14, 2024

Here are several examples of direct expenses: The materials used to construct a product for sale The cost of the freight needed to transport goods to and from a manufacturing facility The labor incurred to produce hours billable to a client Labor and payroll taxes paid based on the number of units produced Production materials consumed during the manufacture (..)

Payroll 52

Payroll Cost Accounting Tax Accounting 52

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

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

MAY 21, 2023

Related Courses Activity-Based Costing Cost Accounting Fundamentals What is a Standard Labor Rate? There are two definitions of the standard labor rate concept, which are noted below.

Cost Accounting 40

Cost Accounting Payroll Billing Tax 40

Accounting Tools

MAY 7, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals The Interpretation of Financial Statements What is the Cost of Goods Sold? Cost of goods sold is the total of all costs used to create a product or service, which has been sold. It is allowed by the IRS for tax reporting purposes.

Financial Statements 75

Financial Statements Financial Reporting Payroll Tax 75

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

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

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

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 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

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

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

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

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

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 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

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.

Cost Accounting 40

Cost Accounting Payroll Billing Tax 40

Accounting Tools

OCTOBER 25, 2023

Related Courses Cost Accounting Fundamentals Public Company Accounting and Finance What is Compliance Cost? Compliance cost is the total cost incurred by a firm to comply with applicable regulations. These regulations may cover such areas as tax reporting, environmental topics, transport, and finances.

Cost Accounting 40

Cost Accounting Collections Tax Accounting 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

Billing Platform

JANUARY 29, 2025

Gross Margin (%) = (Revenue COGS) / Revenue Net Profit Margin: Again, expressed as a percentage, this financial metric indicates a companys profitability after accounting for expenses, including COGS, operating expenses, taxes, interest, etc. Be sure to regularly review and update the data.

Budgeting 52

Budgeting Accounting Accounting Cost Accounting 52

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

APRIL 12, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals Cost Management Guidebook What are Prime Costs? Prime costs are the costs directly incurred to create a product or service. Piece rate pay.

Billing 40

Billing Cost Accounting Payroll Tax 40

Accounting Tools

MARCH 29, 2023

Related Courses Accounting for Inventory Activity-Based Costing Cost Accounting Fundamentals What is Factory Overhead? Factory overhead is the costs incurred during the manufacturing process, not including the costs of direct labor and direct materials.

Budgeting 40

Budgeting Financial Statements Cost Accounting Accounting 40

Accounting Tools

JULY 23, 2024

Material Costing for Initial Inventory Acquisition A company must decide whether it will record acquired materials at their purchased prices, or if additional costs will be added, such as freight in , sales taxes , and customs duties. Overhead is only allocated to work-in-process and finished goods inventory.

Financial Reporting 40

Financial Reporting Auditing Cost Accounting Accounting 40

Accounting Tools

NOVEMBER 2, 2023

Related Courses Accounting for Inventory Activity-Based Costing Cost Accounting Fundamentals Overhead is those costs required to run a business, but which cannot be directly attributed to any specific business activity, product, or service. Thus, overhead costs do not directly lead to the generation of profits.

Cost Accounting 40

Cost Accounting Accounting Accounting Tax 40

Accounting Tools

OCTOBER 5, 2023

Related Courses Accountants’ Guidebook Bookkeeping Guidebook Cost Accounting Fundamentals What is a Revenue Expenditure? A revenue expenditure is a cost that is charged to expense as soon as the cost is incurred. This yields the most accurate income statement results.

Computation 40

Computation Cost Accounting Bookkeeping Accounting 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

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. The expected amount is typically a budgeted or standard amount.

Budgeting 40

Budgeting Payroll Cost Accounting Tax 40

Accounting Tools

AUGUST 16, 2024

Or, the standard cost associated with a labor standard is compared to the actual labor cost incurred, which results in a labor rate variance. Labor Routings A labor standard for a complex process may include a number of individual labor standards that are compiled into a comprehensive labor routing.

Budgeting 40

Budgeting Billing Payroll Cost Accounting 40

Accounting Tools

SEPTEMBER 20, 2023

In the typical inflationary cost environment, accessing an old LIFO layer means that a business will likely report a low cost of goods sold and therefore a higher-than-usual profit , which in turn means that it may have to pay an unusually large amount of income tax. The cost accountant can provide them with this information.

Auditing 40

Auditing Cost Accounting Tax Accounting 40