Discover how the retail inventory method simplifies store inventory valuation with easy calculations, cost-to-retail ratios, ...

Sometimes figuring the cost of your products is simple. You spend $500 to make 200 identical $5 items for sale. As they're all the same, you allocate $2.50 in costs to each item when it's time to do ...

The high-low method is used in cost accounting to estimate fixed and variable costs based on a business's highest and lowest levels of activity. By focusing on these extremes, the high-low method ...

Managerial accounting, a tool used for business decision-making, allows for different methods of calculating net income. The general formula is that sales minus costs equals net income, but there are ...

Direct labor rates include wages, taxes, and benefits directly tied to producing goods or services. Exclude indirect labor like supervisors from direct labor rate calculations. Monitoring direct labor ...