About This Chapter
Business Costs, Taxes & Inventory Valuations - Chapter Summary
This chapter on business costs, inventory valuations and taxes is made up of short video lessons that cover these concepts in generally less than ten minutes. Here you'll review subjects like exchange rates, payroll cost calculations and the formula for fixed costs. Once you finish this chapter, you'll be ready to:
- Define fixed costs with examples
- Explain examples of variable cost and the formula used to find it
- Outline payroll cost calculations
- Discuss cost minimization and productive efficiency
- Give the definition and formula used for average tax rate
- Identify the calculations used for property taxes
- Differentiate between different inventory valuation methods
- Detail currency conversion and exchange rates
Whether you need to learn something new or review what you already know, this mobile-friendly chapter can help. Contact our experts through the Dashboard if your have any questions. Along with each lesson, there's a self-assessment quiz that tests your knowledge so you know where to focus your study.
1. Fixed Costs: Definition, Formula & Examples
Understanding an organization's cost structure is essential for management to make appropriate investments. In this lesson, you'll learn the definition of fixed costs and why understanding fixed costs is an important part of financial management.
2. Variable Cost: Definition, Formula & Examples
In this lesson, we'll be looking at variable costs, which are those costs that change directly with production. After the lesson, you can test your knowledge with a short quiz.
3. Payroll Cost Calculations
Watch this video lesson to learn how the money you earn from a job, your paycheck, is calculated based on the number of hours you have worked. Also learn how taxes are calculated as well as overtime pay.
4. Cost Minimization & Productive Efficiency
Companies ultimately want to reduce costs and increase production. The question they must answer is, how to accomplish this task? In this lesson, we will learn about two important terms that are often incorporated with reducing costs and increasing production.
5. Average Tax Rate: Definition & Formula
Knowing the average tax rate in a progressive tax system is useful in understanding your tax burden. In this lesson, you'll learn about the average tax rate, related concepts, and how to calculate it. A short quiz follows.
6. Property Taxes: Calculations & Rates
Depending on where you live, the property taxes for houses are calculated differently. Watch this video lesson to see how the calculations are made based on some example rates.
7. Inventory Valuation Methods: Specific Identification, FIFO, LIFO & Weighted Average
This lesson introduces you to the cost flow assumption methods of specific identification: FIFO, LIFO, and weighted average. You will also learn how to compute inventory in a perpetual system using the methods of FIFO, LIFO, and weighted average.
8. Exchange Rates & Currency Conversion
After watching this video lesson, you will learn how currency conversion works. You will be able to convert from one currency to another with ease. Learn the process behind currency conversion.
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Other chapters within the DSST Business Mathematics: Study Guide & Test Prep course
- Number Sense
- Basics of Linear Equations & Inequalities
- Graphing and Evaluating Equations and Functions
- Solving Quadratic Equations & Functions
- Probability and Statistics for Business
- Depreciation & Salvage Values
- Interest & Purchases
- Using Math for Financial Analysis
- DSST Informational Resources
- DSST Business Mathematics Flashcards