Direct labor costs only comprise costs directly related to the workers who participated in the manufacture of completed items. For example, if a painter was hired to paint a car under construction, the painter’s salary would be included in the prime costs. TThese direct labor costs are the same ones used in calculating the prime …
Bank reconciliations are like a fail-safe for making sure your accounts receivable never get out of control. And if you’re consistently seeing a discrepancy in accounts receivable between your balance sheet and your bank, you know you how to calculate absolute liquid ratio or cash ratio with equations test of liquidity have a deeper issue …
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