Predetermined Overhead Rate POHR: Formula and Calculation
Its production department comes up with the details of how much the overheads will be and what other costs will be incurred. Departmental overhead rates are needed because different processes are involved in production that take place in different departments. The majority of direct costs are variable as they change when additional units of a […]
Gross Margin Ratio Definition and Formula
Identifying these inflection points can guide future strategies, enabling businesses to replicate successes and sidestep pitfalls. This means the goods that she sold for $1M only cost her $350,000 to produce. Now she has $650,000 that can be used to pay for other bills like rent and utilities. One common strategy is dynamic pricing, which […]
What is a Liability Account? Definition, Types, and Examples
Long-term loans are debts that are scheduled to be repaid over several years, often with fixed interest rates. These lease obligations are considered long-term liabilities.Pension obligations arise when a company provides retirement benefits to its employees, promising to make future payments after they retire. These obligations are typically funded over the long term.Long-term liabilities play […]
Whats the Difference Between Gross Sales vs Net Sales?
You could use these metrics to help steer this rep, and the team, in the right direction. You might bundle your set gross sales KPI with qualified leads and most likely to close KPIs. This forces your reps to focus on high-budget and high-quality deals in tandem, motivating them to prioritize big business and high-value […]