Author name: Jeff Hillendahl

In simpler terms, direct labor costs are the payments to the workers doing the hands-on work, while manufacturing overhead costs are the behind-the-scenes expenses that keep the entire production process going. Both are essential components of conversion costs, giving a complete picture of the money spent to transform raw materials into finished products. In a […]

If the business is focused on the intensive conversion of raw materials to products, then conversion costs can give better results. In contrast, if the business regularly invests a big chunk of its expense on raw materials, Prime costs can provide a better overview. Both provide an overview of the company’s expenses that affect the

Bill is working on refinancing his current loans with a new bank, so he has to prepare a multiple step income statement with a detailed operating section. When managed correctly, increasing operating profit can be a helpful way to grow a company’s bottom line. Each of these metrics shows a profit at different moments of

However, NOI is a before-income-tax figure on a property’s income and cash flow statement, that excludes principal and interest payments on loans, capital expenditures, depreciation, and amortization. Selling and administrative expense budget The costs of selling a product are closely related to the sales forecast. Managers must also estimate other expenses such as interest expense,