In financial accounting and taxes, attributing expenses to the correct category isn’t just a tip or guideline; it’s a requirement when filing IRS forms, requesting grant funds, or reporting to ...

Direct costs -- such as labor and parts -- are those linked to the provision of services or the manufacturing of goods. Look for these costs in the "cost of goods sold" section of a statement of ...

If you own your own business or are responsible for running someone else's company, you'll have to separate your production costs into various categories before you can analyze how well your business ...

Explicit costs are direct, out-of-pocket expenses that a company incurs during its operations. These costs are easily identifiable and measurable, typically involving monetary transactions. Explicit ...

Overhead expenses are any costs that aren't directly associated with generating a profit. Although they don't contribute to revenue, they are still important and necessary. Companies use cost ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, ...

A new Technical Question and Answer (TQA) issued by the AICPA discusses the characteristics of expenses that would be considered “direct care of existing collections” under a new FASB standard that ...

All the expenses your business deducts must be “ordinary and necessary,” according to the IRS. Many, or all, of the products featured on this page are from our advertising partners who compensate us ...