Although the electricity expense can be tied to the facility, it can’t be directly tied to a specific unit and is, therefore, classified as indirect. Basing your product prices based on direct costs alone does …
The net income metric, or the “bottom line” on the income statement, is a company’s residual earnings, inclusive of all operating and non-operating expenses incurred in a given period. Once you know the corporate tax …
Remember, the trade discount allowance reduces your total sales to represent the actual price that your consumers pay. Your income statement showcases the financial progress of your business during a specific period. …
Similarly, obsolescence may occur if a newer version of the same product is released while there are still items of the current version in inventory. This type of situation would be most common in the ever-changing …
Calculating your business’s debt-to-asset ratio can provide interested parties with the numbers they need to make a decision on investing in or loaning funds to your company. It indicates how much debt is used to …
In this case, the laptop would be recorded on the company's balance sheet as property, plant, and equipment (PP&E). However, if the laptop is being used for personal use, it would not be considered a fixed asset and would not be recorded on the company's balance sheet. Fixed assets are company-owned, long-term tangible assets, such [...]