It is a prepayment received by an individual supplier or a company from a customer who ordered the delivery of goods or services at a later date. Any company or individual supplier who has received an unearned revenue has a liability equal to that “prepayment” until the goods or services are delivered. Since it is not yet earned, this…
Read MoreIt includes leftover stock from the previous period and can be found in the company’s balance sheet under inventory. The marginal cost of production refers to the cost to produce one additional unit. Theoretically, companies should produce additional units until the marginal cost of production equals marginal revenue, at which point revenue is maximized. Step 3: Calculate direct labour…
Read MoreBecause each state receives a credit to cover 5.4% of FUTA payments, employers effectively pay only 0.6% annually into FUTA. In the case of a self-employed individual, the rate is 15.3% of net business income instead of wages. Be aware that withholding rates change according to current tax legislation. Not Accounting for Fringe Benefits As a result, the employer…
Read MoreThe cost of fixed assets, such as machinery or vehicles, is spread over time as depreciation. For example, the industrial oven might lose $200 in value every month, irrespective of usage. Rocket Money makes it easy to budget using custom spending categories to reach your goals. For example, the salary of a sales executive with a fixed component and…
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