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Definition of Payroll expense
The amount paid to employees for services rendered; synonymous with salary expense and wage expense .
The amount of tax associated with salaries that an employer pays to governments (federal, state, and local).
The amount paid to employees for services rendered; synonymous with payroll expense and wage expense .
The amount paid to employees for services rendered; synonymous with salary expense and payroll expense .
expense s that have to be recorded in order for the financial statements to be accurate. Accrued expense s usually do not involve the receipt of an invoice from the company providing the goods or services.
The account that records the short-term, noninterest-
bearing liabilities of a business that accumulate over time, such
as vacation pay owed to employees. This liability is different than
accounts payable, which is the liability account for bills that have been
received by a business from purchases on credit.
For investment companies, the management fee and “other expense s,”
including the expense s for maintaining shareholder records, providing shareholders with financial statements,
and providing custodial and accounting services. For 12b-1 funds, selling and marketing costs are included.
That portion of the total income tax provision that is based on
That portion of the total income tax provision that is the result
of current-period originations and reversals of temporary differences.
An expense account that represents the portion of the cost of an asset that is being charged to expense during the current period.
The reduction in value of an asset as it is used for current company operations.
The percentage of the assets that were spent to run a mutual fund (as of the last annual
statement). This includes expense s such as management and advisory fees, overhead costs and 12b-1
(distribution and advertising ) fees. The expense ratio does not include brokerage costs for trading the
portfolio, although these are reported as a percentage of assets to the SEC by the funds in a Statement of
Additional Information (SAI). the SAI is available to shareholders on request. Neither the expense ratio or the
SAI includes the transaction costs of spreads, normally incurred in unlisted securities and foreign stocks.
These two costs can add significantly to the reported expense s of a fund. The expense ratio is often termed an
Operating expense Ratio (OER).
Charged to an expense account, fully reducing reported profit of that year, as is appropriate for
expenditures for items with useful lives under one year.
The costs incurred in buying, making or producing goods and services.
Costs involved in running the company.
Cost of doing business which does not change with the volume of business. Examples might be rent for business premises, insurance payments, heat and light.
fixed expenses (costs)
expense s or costs that remain the same in amount,
or fixed, over the short run and do not vary with changes in sales volume
or sales revenue or other measures of business activity. Over the
longer run, however, these costs increase or decrease as the business
grows or declines. Fixed operating costs provide capacity to carry on
operations and make sales. Fixed manufacturing overhead costs provide
production capacity. Fixed expense s are a key pivot point for the analysis
of profit behavior, especially for determining the breakeven point and for
analyzing strategies to improve profit performance.
What was spent to run the non-sales and non-manufacturing part of a company, such as office salaries and interest paid on loans.
Income Tax Expense
See income tax provision.
management expense ratio (MER)
The total expense s expressed as an annualized percentage of daily average net assets. MER does not include brokerage fees and commissions, which are also payable by the Fund.
The amount of expense incurred for the general operation of an office.
Any expense associated with the general, sales, and administrative
functions of a business.
The total amount that was spent to run a company this year.
The amount of money the company must spend on overhead, distribution, taxes, underwriting the risk and servicing the policy. It is a factor in calculating premium rates.
The period of service for which a company compensates its employees.
A journal used to record the payroll of a company.
A report on which is summarized the wage and deduction information
for employees for a specific payroll .
This calculation is used by states to determine the unemployment
contribution rate to charge employers and links the contribution rate
to fluctuations in a company�s total payroll over time.
Payroll taxes payable
The amount of payroll taxes owed to the various governments at the end of a period.
An expenditure that is paid for in one accounting period, but which
will not be entirely consumed until a future period. Consequently, it is carried on the
balance sheet as an asset until it is consumed.
expense s that have been paid for but have not yet been used up; examples are prepaid insurance and prepaid rent.
The amount of expense paid for the use of property.
Operating expense s that vary in proportion to
changes in total sales revenue (total dollars of sales). Examples are sales
commissions based on sales revenue, credit card discount expense s, and
rents and franchise fees based on sales revenue. These expense s are one
of the key variables in a profit model. Segregating these expense s from
other types of expense s that behave differently is essential for management
decision-making analysis. (These expense s are not disclosed separately
in externally reported income statements.)
What was spent to run the sales part of a company, such as sales salaries, travel, meals, and lodging for salespeople, and advertising.
expense s that vary in close proportion to changes
in total sales volume (total quantities of sales). Examples of these types of
expense s are delivery costs, packaging costs, and other costs that depend
mainly on the number of products sold or the number of customers
served. These expense s are one of the key factors in a profit model for
decision-making analysis. Segregating these expense s from other types
of expense s that behave differently is essential for management decisionmaking
analysis. The cost-of-goods-sold expense depends on sales volume
and is a unit-driven expense. But product cost (i.e. the cost of
goods sold) is such a dominant expense that it is treated separately from
other unit-driven operating expense s.
Those that vary with the amount of goods you produce or sell. These may include utility bills, labor, etc.
expense s that change with changes in either sales volume
or sales revenue, in contrast to fixed expense s that remain the same
over the short run and do not fluctuate in response to changes in sales
volume or sales revenue. See also revenue-driven expense s and unitdriven
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