Bookkeeping

Another reason for work in process inventory is safety stock, buffer stock, or anticipation inventory. Some companies find it beneficial to hold on to goods at certain stages of production as insurance against shortages of supply or spikes in demand. Vendor managed inventory agreements are often helpful in determining the right purchase orders to protect […]

In some cases, business owners may also believe they can make up for any lost revenue by selling more goods or services. When calculating direct costs, there are a few things you need to take into account. Hence, the total cost for creating 1,000 tables is $12,900, while the per-unit cost is $13. In the

By definition, assets in the Current Assets account are cash or can be quickly converted to cash. Cash equivalents are certificates of deposit, money market funds, short-term government bonds, and treasury bills. Depending on the nature of the business and the products it markets, current assets can range from barrels of crude oil, fabricated goods,

A high ratio (typically greater than 1) indicates that lenders own more of the firm’s total assets than the owners. A good balance between how quickly you settle with your creditors within the agreed terms and a maximum use of cash in your business is necessary. Increased purchasing or reduction of accounts payable will increase

For certain qualified property acquired after September 27, 2017, and placed in service after December 31, 2022, and before January 1, 2024, you can elect to take a special depreciation allowance of 80%. This allowance is taken after any allowable Section 179 deduction and before any other depreciation is allowed. Adam Hayes, Ph.D., CFA, is

Under the Employment Rights Act 1996, the holiday pay reference period starts from the last whole week ending on or before the first day of the period of leave. This will typically be a week from Sunday to Saturday, but it could end on another day of the week if a worker is paid on

This involves regular audits, performance reviews, and strategic realignments to ensure that resources, both monetary and human, are deployed where they can generate the most value. Boosting the returns from an investment, be it through improved sales strategies, expansion into new markets, or launching complementary products, can significantly elevate the ROI figure. Two investments might

It is also possible to have a gain from a casualty or theft if you receive money, including insurance, that is more than your adjusted basis in the property. However, under certain circumstances, you may defer paying tax by choosing to postpone reporting the gain. To do this, you must generally buy replacement property within

If the stock is trading above that price, then the benefit of the option has not exceeded its cost. Assume that an investor pays a $5 premium for an Apple stock (AAPL) call option with a $170 strike price. This means that the investor has the right to buy 100 shares of Apple at $170