ADP RUN articles

The total fixed costs, variable costs, unit or service sales are calculated on a monthly basis in this calculator. Meaning that adding the total for all products and services monthly should account for all products and services. You may also want to do the calculation individually for each product or service if the products or service sales vary per month.

Examples of fixed costs for a business are monthly utility expenses and rent.
This means Sam’s team needs to sell $2727 worth of Sam […]

It can also be used to determine the impact on profit if automation (a fixed cost) replaces labor (a variable cost). Yet another possibility is to determine the change in profits if product prices are altered. Finally, the breakeven point can be used to determine the amount of losses that could be sustained if the business suffers a sales downturn. In other words, the breakeven point is equal to the total fixed costs divided by the difference between the unit price and variable costs. Note tha […]

Now that you have a better idea of what you’re looking for, here are five questions to ask to make sure you hire the right bookkeeper for your business. Now, let’s lay the argument of in-house vs. outsourced bookkeeping squarely on what this looks like in application – with real dollars-and-cents. “So then why wouldn’t I hire an accountant who could handle all of the above?

But, with growth comes an increased responsibility for your back office, and your bookkeeper migh […]

Bonds with longer terms to maturity tend to offer higher coupon rates than similar quality bonds, with shorter terms to maturity. First and foremost, the risk of the government or a corporation defaulting on the loan increases, the further into the future you project. Secondly, the inflation rate expectedly grows higher, over time. These factors must be incorporated into the rates of return fixed income investors receive. Yield-to-Maturity (YTM) is the rate of return you receive if you ho […]

Callable bonds typically pay a higher coupon or interest rate to investors than non-callable bonds. Should the market interest rate fall lower than the rate being paid to the bondholders, the business may call the note. This flexibility is usually more favorable for the business than using bank-based lending. However, the investor might not make out as well as the company when the bond is called. For example, let’s say a 6% coupon bond is issued and is due to mature in five years.

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By more accurately and reliably classifying overhead costs at the batch level than traditional cost accounting systems, it is easier for manufacturers to determine the breakeven point of cost and units produced, through cost-volume-profit analysis. This helps managers identify non-value-adding activities and process inefficiencies, and increase profitability. Activity‐based costing assumes that the steps or activities that must be followed to manufacture a product are what determine the overhe […]