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Tip of the Day Pay All Credit Card Balances In Full Each Month

Pay All Credit Card Balances In Full Each Month - It is necessary to pay all credit card balances in full each month to prevent paying extremely high interest rates...

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Indirect Cost

Indirect Cost – Indirect costs are the expenses that are associated with the manufacturing of a certain product or outcome but are not directly related, such as raw materials or production labor.  Indirect costs can include expenses such as: building and equipment maintenance, security, some technology, advertising, and supervision, among other factors.  Calculating the indirect cost for a product can be challenging, because these costs may be shared with other departments or products.  Yet when a cost figure is established for a particular item, it remains constant and can be used to determine profitability.

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Definition of the Day Coverage Ratio

Coverage Ratio - the term coverage ratio is a type of accounting tool that helps measure a company’s ability to survive and grow.  Simply by comparing the company’s assets (gross profits) and liabilities (expenses) are a form of figuring the coverage ratio. The higher the assets, and the lower...

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