A business may choose to allocate its capital to labour and building expansions. It may also invest capital into assets like tools and machinery. The goal is always to invest capital so you receive a higher return than the cost of your capital. As you can imagine, investing capital gets com...
Labor Burden Cost ÷ Payroll Cost Example: Let’s say the accounting department of a large communication company does an analysis and determines that Paul, an employee in their call centre, receives 15K in benefits annually. His wages are 60K. That means his burden rate is $0.25 for every ...
What is revenue in accounting? In this lesson, learn the revenue definition, see revenue examples and learn the difference between revenue and income. Related to this Question In business and economics, what does the term "marginal analysis" refer to?
A cost which is not controllable by a junior manager might be controllable by a senior manager. For example, there may be high direct labour costs in a department caused by excessive overtime working. The junior manager may feel obliged to continue with the overtime to meet production schedule...
In accounting, “gross to net” (GTN) is the process of moving from a total or “gross” to the actual “net” figure that remains after the necessary deductions. This process is how businesses understand their true financial positions, whether they’re looking at payroll or revenue. ...
In accounting, a company’s gross profit is shown as the first line item on the profit and loss statement. Its operating expenses are shown immediately after this. Deducting the operating expenses from the gross income gives the operating income. Non-operating expenses are shown next. Once these...
Which products have a very high market price to manufacturing cost ratio? What is the difference between accounting costs and opportunity costs? What are the factors that influence the demand for a commodity? What are the main benefits of government-imposed price c...
Labour Variance This is about the difference between the normal labor cost and the real labor cost. Labor Variance Analysis Formula: Standard Wages – Actual Wages Alternatively, (Standard Hours x Standard Rate) – (Actual Hours x Actual Rate) ...
Tallying accounts can require many hours. A payroll system with the ability to automate your accounting process keeps your accounts organized, and saves you having to struggle through the numbers after every pay run. Decreased cost Infrastructure procurement and maintenance make up a huge part of ...
In particular, the detailed accounting approach helps distinguish exogenous from policy-influenced growth drivers. The combination of lower per-hour productivity and lower labour utilisation is the cause of relatively low per capita GDP in euro area and EU15 countries, while weak productivity remains ...