Just about everything you do in your business comes with a cost. Whether it’s time, money, effort, or something else, you pay a price. But, what happens when you set a limit for production and have to produce more than your set limit? You encounter what’s known as marginal cost. What is marginal cost?
Read More Marginal Cost Definition: What to Know
From time to time, you may need to raise prices in your business to keep up with production or offset business expense increases. But what if you’re hit with a price increase? What do you do?
Read More If You’re Hit With a Price Increase, Take These 6 Steps
Some of your main goals as a business owner are to boost sales and increase revenue. One way to do this is to increase advertising spend. But is hiking up the money spent on advertising worth it for your company? Ask yourself, Should I increase my advertising spend? and keep a few considerations in mind […]
Read More Thinking About Increasing Your Advertising Spend? Keep These 5 Considerations in Mind
You probably depend on equipment to run your business. Computers, cars, and copy machines are just some of the must-have company assets you use. When it’s time to buy new equipment, know how to account for it in your books with a purchase of equipment journal entry.
Read More Getting New Equipment? You’ll Need to Make a Purchase of Equipment Journal Entry
When you have a business, you have direct and indirect costs. Tracking these expenses is key to having up-to-date books, receiving tax deductions, and making business decisions. So, what’s the difference between direct vs. indirect costs?
Read More How to Keep Your Direct vs. Indirect Costs Straight
As a business owner, you likely evaluate your employees’ performance from time to time. But, your employees aren’t the only ones you should be assessing. If you have suppliers you go to for inventory and materials, you need to evaluate their performance, too. To learn more about supplier evaluation and how to evaluate a supplier, […]
Read More Increase Efficiency With a Routine Supplier Evaluation
Your business incurs all kinds of expenses during day-to-day operations. From payroll expenses to selling, general, and administrative expense (aka SG&A), there are a number of costs you need to pay attention to. But, what is SG&A exactly?
Read More Your Guide on Selling, General, and Administrative Expense (SG&A)
Part of running a business is recording day-to-day operating costs in your books. These expenses fall into two categories: cost of goods sold (COGS) or operating expenses. But what’s the difference between the two? Read on to learn about cost of goods sold vs. operating expenses and how to tell the difference when doing your […]
Read More Cost of Goods Sold vs. Operating Expenses: Your Go-to Guide
If you want to keep your business running, you need to fork over some cash to buy goods and services. And sometimes, you might use credit to make these purchases, resulting in accrued liabilities.
Read More The Basics of Accrued Liabilities in Business