Costs in a business are traditionally divided into operating and administrative categories. Both are necessary for the company, but operating costs are closely tied to specific products and services ...

Allocating direct costs to production is pretty straightforward -- you know what the materials and direct labor costs. The hard part is determining the amount of overhead to allocate to finished goods ...

The overhead ratio measures how much of a company's total revenue is spent on indirect costs. This metric is useful for identifying areas where costs can be reduced to improve profitability. Analyzing ...

There are two main categories of expenses that a business can incur: overhead and operating expenses. Operating expenses are those that a business incurs as a result of its normal operations. These ...

Expenses refer to the sums that a business spends in order to run its operations. Expenses are distinguished from capital expenditures by the fact that expenses produce benefits for the business in ...

One of the questions I am often asked is not how to reduce an expense, but how to identify which ones should be reviewed more closely. Core expenses are obvious in a business, but overhead expenses ...

Many small business owners get trapped by their landlords. During the start up or high growth phase of any company, the owner tends to lease more space than they need. They get caught in the fantasy ...