overhead

Tag: overhead

Overhead Expense Reduction

See Also: Predetermined Overhead Rate Activity Based Costing vs Traditional Costing Activity Based Cost Allocation Standard Cost Overhead Expense Reduction As a general precursor to Overhead expense reduction, Group Purchasing Organizations, Co-ops and Consortiums always lead to lower prices because they aggregate spends and create buying power. This may be true for smaller spends but

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Maximizing Your Bottom Line In 3 Simple Steps

Sales are great, but wouldn’t they be better if you were actually able to reap the rewards? Many CEOs that were not trained with an accounting/finance background struggle to understand profitability. They think that if sales are great, then the business is great. But when sales increase, inventory and overhead increases. Productivity also decreases –

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CFO: Income Producer vs. Overhead

It’s often said, “you don’t need a title to be a leader.” But regardless of titles, it’s important to take note of the difference in roles. One of the many negative effects of the recent economic downturn is that we’ve seen many companies fire their CFOs because they view them as overhead. These companies often

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How does a CFO add value?

Oftentimes, CEOs don’t see the value in a CFO… They ask “how does a CFO add value?” After hearing that countless times, I want to let you on a little hint. A good CFO improves profitability and cash flow 1-2% of sales. A few months ago, I was meeting with a young man named Nathan who was

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Business Advisory System

You may be familiar with the advisory system (pictured at right) formerly used by the Department of Homeland Security to disseminate information regarding the risk of terrorist acts.  Despite its being replaced by a new system in 2011, most of us remember the color-coded warning system that came in the wake of September 11. But,

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Cost Control vs Cost Reduction

There is a difference between cost control vs cost reduction. Most people think that controlling costs and reducing costs are one and the same when, in fact, they can generate two totally different outcomes. The first thing you need to know is that you can’t grow a company by cost reduction alone. You can get

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Standard Cost

Standard Costs Definition Standard cost accounting is a goal or budget costs that is associated with variable costs. They are also used to measure the cost that management believes that it will incur over a period. Standard Costing Explained In short, standard costing takes the direct labor, direct materials, and manufacturing overhead, and estimates the

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Progress Billing Example

Find a progress billing example below. Progress Billing Example UNCONDITIONAL FINAL WAIVER AND RELEASE OF LIENS AND CLAIMS OWNER: Business X, LLC. PROJECT NAME: PRIORITY MANAGEMENT For and in exchange of the sum of $, the sufficiency of which is hereby acknowledged, the undersigned Contractor, subcontractor, consultant, materialmen or laborer (hereinafter the “Undersigned”) warrants and

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Product Costs vs Period Costs

See Also: Product Pricing Strategies Product Costs vs Period Costs In accounting, all costs incurred by a company can be categorized as either product costs or period costs. The two types of costs are recorded differently. Product costs are applied to the products the company produces and sells. Product costs refer to all costs incurred

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Overhead Rate

See Also: Discount Rate Overhead Expense Reduction When is an interest rate not as important in selecting a loan? Required Rate of Return Predetermined Overhead Rate Outstanding Debt Overhead Rate Definition Overhead rate, defined as an expression of overhead costs which are displayed across periods, is an essential function for a business which must manage

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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

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