Only the costs of raw materials and direct labor are used in the prime cost formula. As a business owner, you can use the prime cost information to identify which products are profitable and which ones are not. You could then raise or lower the prices of unprofitable products, or discontinue production altogether. Additionally, you can ...
They can deposit it, cash it, or potentially sign it over to someone else. An effective representative payee should improve the beneficiary’s life and work in the beneficiary’s best interests. If a representative payee takes advantage of their position, the Social Security Administration should be notified immediately. For example, ...
The market will price similar bonds so that they all produce the same yield to maturity. Par value is the nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate. The certificate is issued by the lender and given to a borrower or by a […]
Alternatively, when the economy is down, clients may pass on orders or find it more difficult to make full payments. The net realizable value (NRV) of our hypothetical company’s inventory can be calculated by adding the defective NRV and the non-defective NRV, which is $540,000. A cash flow statement (CFS) is a financial statement that ...
For example, a company with revenues of $10 million and expenses of $8 million reports a gross income of $10 million (the whole) and net income of $2 million (the part that remains after deductions). Gross income and net income are also commonly used to calculate profit margins. Net amount is the total amount of […]
Nonmonetary assets are items a company holds for which it is not possible to precisely determine a dollar value. These are assets whose dollar value may fluctuate substantially over time. A company may need to change its nonmonetary assets as the assets wear out or become obsolete. Generally speaking, nonmonetary assets are assets that appear ...