In manufacturing companies, labor and materials costs are broken into direct and indirect components. Direct costs are those that can be traced directly to the products that are being produced, while ...

In financial accounting and taxes, attributing expenses to the correct category isn’t just a tip or guideline; it’s a requirement when filing IRS forms, requesting grant funds, or reporting to ...

Parts and supplies needed by your firm to deliver services must be classified as inventory for service industry businesses. Generally accepted accounting principles specify that purchases in the two ...

Cost of goods sold (COGS) is an important metric contributing to a business's overall gross profit and long-term growth prospects. This key performance indicator impacts everything from your tax rate ...