Operating expense

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  • Lufa Farm Case Study

    Recurring costs are referred to as “revenue expenses”. As seen in Exhibit 14, Lufa Farms had total revenue of $8,404,485 (including effective gross income), total operating expenses of $7,113,097, which included labour, rent, security, supplies, marketing, and insurance, and total start-up costs of $5,500,000, including equipment and construction. Additionally, the company had high capital expenditure. Capital expenditure refers to funds which a company uses to acquire or update physical assets, in this case, greenhouses. However, the company was able to balance its high capex with low operating costs. Total daily operating costs were approximately $300, which accounted for fuel, labour, transportation, and delivery. The preliminary greenhouse had capital expenses of approximately $80 per square foot, with the initial investment in the building totaling at nearly $2.3 million (81). Although rooftop greenhouses will always cost more (81), they act as lease hold improvements to the building upon which they are enacted. As the landlord owns the greenhouses, they are intangible assets, which can be amortized, and not…

    Words: 2062 - Pages: 9
  • College Scholar Academy Background Essay

    When thinking about what to include in my operating expenses I made a list of things that I will need for my business to be successful. I knew I would need supplies which include handling office administration, purchasing supplies, and travel to college campuses and attending training and conferences. I also knew that I would need to factor in office rent, utilities, advertising and most importantly salaries. During the first three years I do not plan on making a salary for myself. Salaries…

    Words: 1090 - Pages: 4
  • Case Study: Roatan Leather Work

    as an annual certification fee once launched. We’ve also budgeted a significant amount of funds, which will be designated to communication collaboration – both programming and special projects – to fulfill our commitment to the island of Roatán and its inhabitants. This amount will grow over time, as our business becomes more successful and we aim to reinvest in the community we are serving. Finally, because of the geographic location, we anticipate the need for board members to visit and see…

    Words: 1293 - Pages: 5
  • A-1 Case Study

    It is likely that operating expenses will nearly double with the acquirement of a new facility. This new facility will also be a significant expense. Since A-1’s net income ($123,858) is a great deal smaller than its total overhead expenses ($569,512), it will need a loan in order to make this business investment possible. If the future goes as projected with success and the sales from the two facilities nearly double that of A-1’s previous year, repayments on the loan will be possible without…

    Words: 1335 - Pages: 5
  • Case Study Of Internal Control Inventory For The Williams Oil Services Company

    Class 4 Presentation 2015 & http://smallbusiness.chron.com/internal-controls-accounting-information-systems-66659.html Situation B: - Nicole Lopez handles employee travel and expense reports for Scott Sales Services. With the growth in the economy, the sales team began traveling extensively gaining new business. Because of the heavy volume, she no longer required the sales team to provide original airline, hotel, or car rental receipts. She told them to just keep their meals under the…

    Words: 967 - Pages: 4
  • Reserve Bank Of Australi A Case Study

    Life cycle costing is the aggregate expense caused from securing to transfer including the swelling, interest rate, devaluation and duties (however not to be incorporated in this examination). The prerequisite is to look into all the expense there is to be in purchasing an auto over a time of six years. The reckoning ought to incorporate swelling and deterioration and disregarding duties. The vehicle picked is a Mazda 2 5-seater car with 1.5L motor. It is procured money upon buy January 2015.…

    Words: 1499 - Pages: 6
  • Corporate Income Report Sheet

    ## Table of Contents: Insight into the corporate expenses What is an expense report? Aspects associated with this report Why is such a report required? Types of expense report Monthly expenses incurred by a company Monetary costs in terms of official tours What is an expense report template? Why does a template required? Detailing of expenses is given Available in a number of formats Chances of discrepancy is reduced Easy to use Proper scheduling of details Customized templates are available…

    Words: 1919 - Pages: 8
  • Gas Cost Analysis

    gas and oil costs changed and additionally they have made everything else go up in expense. The normal expense for fundamental things and the way that people are living is influenced by these expanding costs. In this paper I will analyze the different ways that these expenses are impacting standard life. The way that everyone has changed things in there life would be transportation and business costs. Gas Prices have changed an impressive measure consistently and it is from every angle growing…

    Words: 1525 - Pages: 6
  • Essay On Reimbursement And Business Policy

    To: Recently it has been seen that our companies travel expenses have increased a lot and with increase in the The purpose of the Travel Expense Reimbursement and Business Policy (Policy) is to establish the principles, mandatory requirements and guidelines for reimbursing individuals for travel, accommodation, meals and other reasonable expenses incurred on behalf of the FUNORAMA TOYS. Ensure fair and consistent treatment of reimbursement of expenses for staff. To ensure all sales…

    Words: 821 - Pages: 4
  • How To Write A Case Study: Blujay Aviation

    not seem very interested in capitalizing in the gift shop. We at Max Profits believe that client has to have the passion in any business venture in which our client wants to participate in. A quick snapshot of what we observed from HNK’s Income Statement, details that the sales have been accruing for the gift shop within the past three years. However the income statement shows that their expenses are too high for gift store to be lucrative. The gross profit margin for the last three years was,…

    Words: 853 - Pages: 4
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