The prime cost to produce the table is $350 ($200 for the raw materials + $150 in direct labor). To generate a profit, the table’s price should be set above its prime cost. It is the direct labor plus any manufacturing overheads needed to convert raw materials into a finished product. By outsourcing payroll accounting…Read more "Defining Conversion Cost Formula, Examples and Calculation"
One of the advantages of predetermined overhead rate is that businesses can use it to help with closing their books more quickly. This is because using this rate allows them to avoid compiling actual overhead costs as part of their closing process. Nonetheless, it is still essential for businesses to reconcile the difference between the…Read more "Predetermined Overhead Rate Formula Calculator with Excel Template"
The changes can include cutting costs or increasing the price of goods and services. Pro forma financial statements are essentially “what-if” generators, giving you the ability to play through different hypothetical scenarios and explore their potential impact on your business. Keep in mind that the general process of creating pro forma financial statements isn’t significantly…Read more "Developing a pro forma financial statement"
Moving down the stairs from the net revenue line, there are several lines that represent various kinds of operating expenses. Although these lines can be reported in various orders, the next line after net revenues typically shows the costs of the sales. This number tells you the amount of money the company spent to produce…Read more "Financial Statements: List of Types and How to Read Them"
If you’re in the market for an all-in-one payroll software, the name Paychex is hard to escape. This solution offers mobile and web-based tools that help process payroll, tax filing, employee self-service, and other potential capabilities. Paychex is a highly scalable and customizable solution, making it the top choice for many growing businesses. QuickBooks Payroll is at a slightly…Read more "Best Payroll Companies for Small Business 2023"
When speaking to a church accounting software provider, make sure you ask what sort of free trial they have available. Next, make a list of all of the actions your church must perform on a monthly and yearly basis to keep track of its finances, report how donations are used and file taxes. Also, list…Read more "10 Best Church Accounting Software Of 2023"
This secure online payment platform allows your clients to pay in minutes. If you have recurring customers, they are welcome to create an account and keep a credit card on file. If they choose this option, the card will be charged within moments of receiving the invoice. The chief issue with wholesale distribution software systems…Read more "What Is Distribution? Distribution Definition, Types, & More"