Sometimes figuring the cost of your products is simple. You spend $500 to make 200 identical $5 items for sale. As they're all the same, you allocate $2.50 in costs to each item when it's time to do ...

The high-low method is used in cost accounting to estimate fixed and variable costs based on a business's highest and lowest levels of activity. By focusing on these extremes, the high-low method ...

Discover how the retail inventory method simplifies store inventory valuation with easy calculations, cost-to-retail ratios, ...

There are two basic methods of accounting that businesses use to track and report revenues: the cash basis and the accrual basis. Under the accrual basis, revenues are recorded on a company's income ...

Figuring the cost of goods sold is simple if you sell dozens of interchangeable items. One non-stick frying pan is much like another, for instance, so you don't need to tie specific costs to a ...

Direct labor rates include wages, taxes, and benefits directly tied to producing goods or services. Exclude indirect labor like supervisors from direct labor rate calculations. Monitoring direct labor ...