Hourly workers who assemble and ship the cards
-is a fixed cost for a company that sells greeting cards online and mails the printed cards to [ customers. ]
Which of the following is part of the cost of goods or services sold for a company?
Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This amount includes
the cost of the materials and labor directly used to create
the good. It excludes indirect expenses, such as distribution costs and sales force costs.
Which of the following is a fixed cost for a company that sells greeting cards online and mails the printed cards to?
Hourly workers who assemble and ship the cards
-is a fixed cost for a company that sells greeting cards online and mails the printed cards to [ customers. ]
Why can a bank afford to pay an interest rate on a savings account quizlet?
If you plan to take money out of the bank frequently, what type of account should you get? … Why can a bank afford to pay an interest rate on a savings account?
Because the bank lends that money out at a higher interest rate
. What does an exchange rate tell you?
What tells you how much money a company has left over after subtracting all expenses?
What is
profit
? Profit measures how much money your company makes after paying all of its expenses. The two types of profit businesses typically look at are gross profit and net profit. Gross profit is how much money your company has earned after subtracting the cost of goods sold (COGS).
What 5 items are included in cost of goods sold?
- The cost of products or raw materials, including freight or shipping charges;
- The direct labor costs of workers who produce the products;
- The cost of storing products the business sells;
- Factory overhead expenses.
What are examples of COGS?
Examples of what can be listed as COGS include
the cost of materials, labor
, the wholesale price of goods that are resold, such as in grocery stores, overhead, and storage. Any business supplies not used directly for manufacturing a product are not included in COGS.
What is not included in COGS?
Cost of goods sold only includes the expenses that go into the production of each product or service you sell (e.g., wood, screws, paint, labor, etc.). … COGS excludes indirect costs, such as
distribution expenses
. Do not factor things like utilities, marketing expenses, or shipping fees into the cost of goods sold.
Which of the following assets is the most liquid?
Cash on hand
is the most liquid type of asset, followed by funds you can withdraw from your bank accounts.
What does a savings account make a better investment than a checking account?
Why does a savings account make a better investment than a checking account? …
Savings accounts pay an annual dividend
. Checking accounts aren't government-insured. Savings accounts earn interest.
Why can a bank afford to pay an interest?
Why do banks pay interest on my savings? …
Banks use the money deposited on savings accounts to lend to borrowers
, who pay interest on their loans. After paying for various costs, the banks pay money on savings deposits to attract new savers and keep the ones they have.
Is profitability the same as profit?
Definition of Profitability
While profit is an absolute amount,
profitability is a relative one
. It is the metric used to determine the scope of a company's profit in relation to the size of the business. Profitability is a measurement of efficiency – and ultimately its success or failure.
How do you find out how much profit a company makes?
Net profit = revenue –
(COGS + operating costs)
Your business would have a net profit margin of 20%. Therefore, 20% of your total sales revenue is profit.
What are the debts owed by a business called?
Liabilities
Debts owed by a business—or creditors' equity. Examples: notes payable, accounts payable.
Is labor cost included in COGS?
Cost of goods sold or COGS, or cost of services (COS), is the direct costs associated with producing goods.
COGS/COS includes both direct labor costs
, and any direct costs of materials used in producing or manufacturing a company's products. … Cost of goods sold is subtracted from revenue to arrive at gross profit.
What is the formula for cost of sales?
The cost of sales is calculated as
beginning inventory + purchases – ending inventory
. The cost of sales does not include any general and administrative expenses. It also does not include any costs of the sales and marketing department.
