administrative expenses

Tag: administrative expenses

Predetermined Overhead Rate

Predetermined Overhead Rate Definition A company uses a predetermined overhead rate to allocate overhead costs to the costs of products. Indirect costs are estimated, a cost driver is selected, cost driver activity is estimated, and then indirect costs are applied to production output based on a formula using these data. Predetermined Overhead Rate Example For

Read More

Current Expenditures

Current Expenditures Definition Current expenditures refer to short-term spending that is fully expensed in the fiscal period in which it is incurred. They are in contrast to capital expenditures, which refer to spending on long-term assets that are capitalized and amortized over their useful life. Examples of this type of expenditure include wages, salaries, raw material

Read More

Complex COA for SG&A Expenses

See also: Problems in Chart of Account Design Standard Chart of Accounts Example Chart of Accounts for Selling, General, and Administrative Expenses Generally Accepted Accounting Principles Financial Accounting Standards Board Complex COA / Chart of Accounts for SG&A Expenses In lieu of a simple chart of accounts for SG&A expenses (selling general and administration expenses),

Read More

Administration Expenses

Administration Expenses Definition In accounting, administration expenses are listed on the income statement as operating expenses. Administrative expenses are often included in an expense category called selling, general and administrative expenses, or SG&A. Administrative expenses include items such as administrative personnel wages, rent expenses, and utilities. The most effective ways to manage administrative expenses down

Read More

How to Control Annual Audit Fees

Partnership, loan or other agreements may require the annual audit of a company’s financial statements. How to Control Annual Audit Fees The cost of this audit can constitute a significant administrative expense. Therefore, your company’s financial staff needs to properly manage the audit fees. Although the independent accountant has the responsibility of establishing the scope

Read More