An indirect cost is a cost that is not directly traceable to a cost object (product, department, etc.). Rather, the indirect cost is sometimes referred to as a common cost which is allocated to the cost objects in a logical manner. Examples of Indirect Costs For example, the depreciation...
What is indirect costAccounting, Tools
What is eSourcing? Simply put, eSourcing is a collection of digital tools that help streamline, simplify and improve strategic sourcing activities and Procurement processes performed by an organization’s Procurement team. eSourcing tools improve Procurement’s ability to generate value for the organiza...
Indirect labor is considered an overhead as these costs cannot be assigned to any one project or service. As asmall business owner, it’s important to set the prices of your services and product high enough to cover yourproduction costs, turn a profit, and still remain competitive. Keeping ...
Indirect labor costs are those related to running a company and selling a product or service versus the actual labor-related costs to make that product or service. Knowing the difference can help you create better financial reports and strategic plans ba
Employees submit expense reports when they use personal funds for business. Learn what an expense report is, what it includes, and how to prepare one.
A fixed cost is a business expense that normally doesn’t change with an increase or decrease in the number of goods and services produced or sold by the business. Fixed costs are commonly related to recurring expenses not directly related to production, such as rent, interest payments, insuran...
Businesses often add the cost of an excise tax directly onto the price of the taxed good, so the tax is passed onto the customer. Customers may or may not know they are paying the cost of the excise tax on top of the price of the good or service. Some companies are transparent about...
If a delivery was contracted for Thursday night and arrived Friday morning, this would be considered an immaterial breach by the court, meaning the late delivery did not cause damages and thus does not result in monetary compensation. However, if the contract explicitly states that time is of ...
Another important aspect of calculating cost of revenue is determining what the beginning inventory was at the beginning of the period. This figure is required because it is an integral part of calculating the cost of goods sold. Last, companies need to be mindful of the "other" category. Dep...