ADP RUN articles

Step Costs Definition, Importance, and Examples

Step Costs Definition, Importance, and Examples

A person aware of these costs would advise getting one machine and producing 1,000 pens rather than 1,050. One machine costs $15,000 in total, but 1,000 pens generate $20,000 in revenue (1,000 x $20). 1) Employer liability insurance costs may remain quite stable until a certain threshold is reached. For example, it may cost €10,000 to have cover for up to 100 staff, but €15,000 if the staff number exceeds 100. From previous posts, you know what a fixed cost is.  There is another type of f […]

What Is a Statement of Shareholder Equity?

What Is a Statement of Shareholder Equity?

It is the return received by the stockholders versus the money invested. Companies may return a portion of stockholders’ equity back to stockholders when unable to adequately allocate equity capital in ways that produce desired profits. This reverse capital exchange between a company and its stockholders is known as share buybacks. Shares bought back by companies become treasury shares, and their dollar value is noted in the treasury stock contra account. Companies fund their capital pur […]

What Are Functional Expenses? A Guide to Nonprofit Accounting

What Are Functional Expenses? A Guide to Nonprofit Accounting

The U.S. Internal Revenue Service (IRS) requires some tax-exempt nonprofit organizations to file Form 990 or Form 990-EZ each year. Program expenses represent costs related to the operations of an organization’s programs, which are aimed at fulfilling the organization’s mission. Because of this, the majority (75% is a good benchmark) of an organization’s expenses should show up in this category. The Statement of Activities looks at the entire organization and reports on the r […]

What is a bank statement?

What is a bank statement?

That’s why it’s important to make sure you keep your bank statements somewhere safe, and always use a shredder when disposing of them. Never ever share your bank details with someone you don’t trust, and make sure you know the fraud policies at your bank. For its part, N26 will never ask you for private information about your account via email. If a customer’s statement displays a zero balance, they are up to date on all payments. Typically, customers who have zero bala […]

What is standard costing? Sage Advice US

What is standard costing? Sage Advice US

Management can likely anticipate a lower profit if actual costs exceed the standard. However, if actual costs are less than standard, management might anticipate a higher profit than initially planned. There are almost always differences between the actual and standard costs, which are noted as variances, as a manufacturer must pay its suppliers and employees the actual costs. The difference between actual costs and standard costs is known as variance. Variance is identified and carefully anal […]

Shareholder vs  Stakeholder: What’s the Difference?

Shareholder vs Stakeholder: What’s the Difference?

For example, employees want the company to remain financially stable because they rely on it for their income. Civic leaders want the company to remain an employer of the area’s residents and to contribute to tax revenue. These two divergent paths are known as the shareholder and stakeholder theories. A sole proprietorship is an unincorporated business with a single owner who pays personal income tax on profits earned from the business.

Employees and board members are internal […]