See Also: Predetermined Overhead Rate Activity Based Costing vs Traditional Costing Activity Based Cost Allocation Standard Cost Overhead Expense Reduction As a general precursor to Overhead expense reduction, Group Purchasing Organizations, Co-ops and Consortiums always lead to lower prices because they aggregate spends and create buying power. This may be true for smaller spends but
Sales are great, but wouldn’t they be better if you were actually able to reap the rewards? Many CEOs that were not trained with an accounting/finance background struggle to understand profitability. They think that if sales are great, then the business is great. But when sales increase, inventory and overhead increases. Productivity also decreases –
It’s often said, “you don’t need a title to be a leader.” But regardless of titles, it’s important to take note of the difference in roles. One of the many negative effects of the recent economic downturn is that we’ve seen many companies fire their CFOs because they view them as overhead. These companies often
Oftentimes, CEOs don’t see the value in a CFO… They ask “how does a CFO add value?” After hearing that countless times, I want to let you on a little hint. A good CFO improves profitability and cash flow 1-2% of sales. A few months ago, I was meeting with a young man named Nathan who was
For some, networking is a dream come true… Extrovert: I’ve been wanting to talk all day about business, economics, and future ventures. Yippee! There’s a networking event tonight! I’m going to rock that room tonight. And for others… Not so much! Introvert: There’s a networking event tonight. I need to be prepping all day. What am I
You may be familiar with the advisory system (pictured at right) formerly used by the Department of Homeland Security to disseminate information regarding the risk of terrorist acts. Despite its being replaced by a new system in 2011, most of us remember the color-coded warning system that came in the wake of September 11. But,
There is a difference between cost control vs cost reduction. Most people think that controlling costs and reducing costs are one and the same when, in fact, they can generate two totally different outcomes. The first thing you need to know is that you can’t grow a company by cost reduction alone. You can get
Standard Costs Definition Standard cost accounting is a goal or budget costs that is associated with variable costs. They are also used to measure the cost that management believes that it will incur over a period. Standard Costing Explained In short, standard costing takes the direct labor, direct materials, and manufacturing overhead, and estimates the
Find a progress billing example below. Progress Billing Example UNCONDITIONAL FINAL WAIVER AND RELEASE OF LIENS AND CLAIMS OWNER: Business X, LLC. PROJECT NAME: PRIORITY MANAGEMENT For and in exchange of the sum of $, the sufficiency of which is hereby acknowledged, the undersigned Contractor, subcontractor, consultant, materialmen or laborer (hereinafter the “Undersigned”) warrants and
See Also: Product Pricing Strategies Product Costs vs Period Costs In accounting, all costs incurred by a company can be categorized as either product costs or period costs. The two types of costs are recorded differently. Product costs are applied to the products the company produces and sells. Product costs refer to all costs incurred
See Also: Discount Rate Overhead Expense Reduction When is an interest rate not as important in selecting a loan? Required Rate of Return Predetermined Overhead Rate Outstanding Debt Overhead Rate Definition Overhead rate, defined as an expression of overhead costs which are displayed across periods, is an essential function for a business which must manage
Predetermined Overhead Rate Definition A company uses a predetermined overhead rate to allocate overhead costs to the costs of products. Indirect costs are estimated, a cost driver is selected, cost driver activity is estimated, and then indirect costs are applied to production output based on a formula using these data. Predetermined Overhead Rate Example For
JOIN THE NEXT STRATEGIC CFO™ WORKSHOP SERIES
Strategic CFO™ Financial Leadership Workshop
The Art Of The CFO®
August 7-10th, 2023
CONNECT WITH STRATEGIC CFO™
