This includes expenses such as advertising, wages of salesmen, or the rent of the shop. They can be costs that are directly related to production, like the cost of raw materials, or they could be costs that are only indirectly related, like the rent for the factory where the goods are made. Administration costs are any costs to do with the administration of the business. It is placing you and your firm in contact with a business that has a need and is interested in you or your firm fulfilling that need. Working offline while on your laptop or Pocket PC is easy with Business Contact Manager 2007 and allows you to synchronize the data when you get back to the office. Many people like working with companies that they can match a face to, unlike picking a service provider from the directory. People hiring professionals have always experienced better results than the ones who haven’t.

If you are a morning person then if you have a roommate who likes to stay up till the wee hours then you may be tagged as a social loser. Note that this does not mean that fixed costs have to stay the same every month — it just means that fixed costs have nothing to do with the number of units produced. This means that variable costs will be zero if no goods are produced, and would be bigger if 100 units were produced, and even bigger if 1000 units were produced. Semi-variable Costs are costs that have a fixed component and a variable component. Variable Costs are costs that vary according to the number of units produced. Indirect Costs, or Overheads, are all those costs that still form part of production costs, but are not directly applicable to the goods being produced. In the manufacturing section, we are most interested in production costs, and for the remainder of this post we will ignore the others.

When we look at the costs of a manufacturing business, we have a number of different ways of breaking them up. Fixed Costs are costs that are independent of the number of units produced. This means that fixed costs would be the same regardless of whether we produced zero, 100, or 1000 units. Note that these categories of costs only apply to Production Costs. The first way breaks up all the expenses of the business, while the other two ways look at production costs in particular. Production costs are any costs that have to do with production. Selling and Distribution costs are any costs that have to do with either selling goods or with distributing the goods. Cloud services are online available to global customers anytime anywhere accessible. For accountants, QuickBooks helps them collaborate with their teams better and efficiently deliver to their customers across regions. If you are a business owner in need of accounting software, we believe that this top 5 list of programs will help you organize your finances better and prepare your business for growth.

This value is split between the people who own the business, and the people to whom the business owes money. A lot of people forget that the accounting equation is actually an equation. The first step of accounting process is identification of transactions. The first way that we will break up costs lets us break up all the expenses in the business into three different types of costs. In tests and exams, these costs will often have “Shop” in the name, such as “Insurance: Shop”. In tests and exams, these costs will often have “Factory” in the name, such as “Factory wages” or “Rent: Factory”. In tests and exams, administration costs will usually have “Office” in the name, such as “Salaries: Office Staff” or “Depreciation: Office Equipment”. We consider Direct Labour and Direct Materials Cost to be the only two direct costs. For example, the cost of the labourers who actually assemble each unit (Direct Labour Cost), or the cost of the materials used to make up each unit (Direct Materials Cost). This does make sense intuitively though: assets represent the total value of the business. That means that if we make a change to one side, we must make the same change to the other side.