What Is the Marginal Cost? In economic theory and business practice, the concept of marginal cost holds a position of critical importance. It represents the change in the total cost that arises when the quantity produced is incremented by one…
Prorated Salary A prorated salary is an adjusted amount of money that an employee is paid, reflecting only the period they have worked rather than the standard full pay period’s remuneration. This method of payment is often applied in circumstances…
Is Per Diem Deductible for Employers? Per diem, a Latin term meaning ‘for each day,’ refers to the allowance provided to employees for daily expenses while on business travel. Typically covering meals, lodging, and incidental expenditures, per diem is designed…
Is Gift to Employee Tax Deductible? The classification of employee gifts occupies a nuanced position, intertwining the gestures of goodwill with the rigid frameworks of tax regulations. Employers frequently confront the question: are tokens of appreciation extended to their staff…
What Are Capital Goods? Capital goods, a term integral to the understanding of economic infrastructures, refer to tangible assets that organizations utilize to produce goods or services that are, in turn, used in the production of other goods or for…
Temporary Vs. Permanent Accounts The classification of accounts into temporary and permanent categories serves as a foundational concept for the accurate tracking of a company’s financial activities over specific periods. Temporary accounts, which primarily comprise revenue, expense, and dividend accounts,…
Assignor Vs. Assignee In legal and financial transactions, the concepts of ‘assignor’ and ‘assignee’ are fundamental to the transfer of rights or obligations. The assignor is the party that transfers its rights or delegates its duties under a contract to…
What is Cost of Goods Manufactured? The Cost of Goods Manufactured (COGM) is a pivotal financial metric for manufacturing and production companies, as it directly reflects the total production costs incurred for goods completed within a given period. This figure…
Examples of Monopoly In economic, a monopoly refers to a market structure where a single company or entity has exclusive control over a particular commodity or service, thereby dictating the terms of access and prices to consumers. This dominance stems…
T – Account Examples Named for its characteristic ‘T’ shape, a T-account is a visual representation that depicts the debit and credit sides of a ledger account, thereby providing a clear and simplified way to track the movement of values…
Fixed Budget Vs Flexible Budget A fixed budget, as the name suggests, is predicated on the assumption of static business conditions and therefore remains unchanged over the period it covers. Conversely, a flexible budget is designed to adapt to the…
Buy a House With an LLC and Rent It to Yourself? Navigating the complexities of real estate investment strategies often leads to the consideration of innovative approaches. One such approach is the prospect of purchasing a property through a Limited…