Islam ইসলাম

05/08/2024

আলহামদুলিল্লাহ জালিম সরকার নিপাত গেলো

05/08/2024

23/03/2024

Understanding Direct and Indirect Costs in COGS

Direct Costs:

Direct costs are expenses directly linked to the production of goods or delivery of services. They are essential for calculating the gross margin.

1. Direct Material Costs:

· These costs involve materials consumed in manufacturing a product or providing a service.

· Detailed in a product’s bill of materials, specifying quantity and cost required for production.

2. Direct Labor Costs:

· Necessary for production, encompassing wages paid to workers involved in manufacturing.

· Includes tasks such as machine operation, material handling, and manual production assistance.

· Calculated by multiplying the number of labor hours by the hourly wage rate.

3. Direct Inventorial Costs:

· Refers to expenses incurred in preparing an inventory item for sale.

· Comprises the sum paid for materials, direct labor, freight-in, and certain manufacturing overhead costs.

Examples of Direct Inventorial Costs:

· Expenses for building shelving or other display arrangements for inventory.

· Costs associated with training employees to use a product, like training after purchasing new software.

· Shipping expenses for delivering products to manufacturers or consumers.

Indirect Costs:

Indirect costs are not directly attributable to a specific product or service and are excluded from COGS. They include expenses such as rent, utilities, insurance, and legal fees.

Conclusion:

Understanding and categorizing costs as direct or indirect is crucial for accurate financial analysis, particularly in determining the cost of goods sold and calculating gross margin. For professional accounting and bookkeeping services, feel free to DM! 👇👇

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20/03/2024

Common Cash Flow Management Mistakes and Solutions

1. Mismatching Cash Flow Maturities
• Utilizing short-term financing for long-term assets leads to liquidity challenges.
• Match cash flows on assets being financed with cash flows on debt.
2. Ignoring Foreign Exchange Rate Volatility
• Trading in multiple foreign currencies can erode profitability, liquidity, and leverage.
• Design an active FX management strategy (forwards, options, etc) to safeguard against currency fluctuations.
3. Ignoring Interest Rate Volatility
• Ignoring interest rate volatility can impact financing costs and cash flow predictability.
• Develop an appropriate financing strategy to manage exposures (swaps, options, etc) and protect cash flows.
4. Misinterpreting Negative Operating Cash Flows

• Negative operating cash flows aren't always negative unless due to financial distress.
• Secure suitable working capital financing and avoid overtrading.
5. Relying on One-Time Positive Investing Cash Flows
• Selling non-redundant assets to fund operating deficits can hide structural challenges.
• Resolve underlying profitability issues early and seek sustainable financing solutions.
6. No Growth Working Capital
• Failing to finance growth working capital can slow expansions and deplete cash reserves.
• Negotiate suitable working capital financing to fund current asset growth.
7. Mismanaging Payment Terms
• Misaligning terms between suppliers and customers can lead to cash flow shortfalls.
• Negotiate terms that complement your cash flow cycle and secure backup financing.
8. Failing to Leverage Cash Management Tools
• Manual cash management exposes organizations to errors and suboptimal positions.
• Integrate modern cash flow management tools for improved visibility and control.
9. Neglecting Cash Flow Forecasting
• Lack of comprehensive cash flow forecasting prevents opportunities and introduces risk.
• Use short-term rolling and long-term cash flow forecasts.
10. Ignoring Long-Term Strategic Implications
• Short-term cash management decisions significantly diminish growth.
• Balance immediate liquidity with long-term vision to align daily needs with long-term goals.

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05/03/2024

EBITDA Explained for Beginners

What is EBITDA and Why is it Important?
EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization, provides a clear insight into how much cash flow a company generates from its core operations. It serves as a valuable tool for comparing different businesses, even those in diverse industries or with different financing structures. By focusing on EBITDA, one can assess the efficiency of each business, irrespective of their unique situations.
Breaking Down EBITDA:
Earnings: The money a company makes from its business activities.
Before: Earnings are considered before other financial elements.
Interest: The money a company pays for borrowing.
Taxes: Payments made to the government based on earnings.
Depreciation: Reduction in the value of assets (e.g., equipment or buildings) over time due to aging or wear.
Amortization: Similar to depreciation but for intangible assets like patents or trademarks that lose value over time.
Importance of EBITDA:
A) Comparative Analysis: EBITDA excludes taxes, interest, depreciation, and amortization, making it easier to compare companies with different financial structures or in various countries.
B) Core Profitability Indicator: EBITDA reveals a company's performance in its main business activities without being influenced by external factors like taxes or financing methods.
C) Decision-Making Tool: Widely used by investors and analysts, EBITDA aids in investment decisions and helps companies make informed choices about their operations.
Tips for Effective Use of EBITDA:
A) Compare Apples to Apples: Ensure companies being compared are in the same industry and have similar business models.
B) Look at Trends: Evaluate a company's EBITDA trend over time to identify improvements or declines.
C) Consider Other Metrics: While EBITDA is valuable, consider additional metrics like revenue growth, net income, and cash flow for a comprehensive analysis.
D) Be Mindful of Non-Recurring Items: Adjust for non-recurring items that may impact EBITDA when making comparisons between companies.
E) Use EBITDA Multiples: Employ EBITDA multiples to value companies; a higher multiple indicates a higher valuation.

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25/08/2023

# # #শরীর # # # ভালো রাখতে # # #পেটের যত্ন নিন ❤️❤️

25/08/2023

কর্মফল কাউকে ঠকায় না।কুরআন শরীফে আছে “মানুষ ততোটুকুই পায়,যতটুকুর জন্য সে চেষ্ঠা করে।”(সূরা নাজম,আয়াত-৩৯)

হাদিসে আছে-“প্রত্যেকটি কাজ নিয়তের সাথে সম্পর্কিত,মানুষ তার মনের নিয়ত অনুযায়ী কর্মফল পাবে।”(বুখারি শরীফ)

আমরা যদি নিজেদের ভাগ্য পরিবর্তনের জন্য পরিশ্রম করি,আল্লাহর কাছে সাহায্য প্রার্থনা করি তবে আল্লাহ আমাদের প্রতি সহায় হবেন,আমাদের ভাগ্য পরিবর্তিত হবে।কুরআন শরীফে আছে “যে জাতি নিজেদের ভাগ্য পরিবর্তনের জন্য নিজেরা চেষ্ঠা করে না,আল্লাহ তাদের ভাগ্য এমনিতেই পরিবর্তন করে দেন না।”(সূরা আনফাল)