Post a new topic
    3 Replies Latest reply on Apr 20, 2008 5:05 PM by MYOB08


    MYOB08 Adventurer

      I have been preparing my budget for 08/09, and taking a good look at my account list.


      I seem to recall when I started studying accounting 25 years ago, Expenses were split between COGS, FIXED, VARIABLE and sometimes SEMI-VARIABLE. The emphasis being on cost accounting. The result of this was that it was key to identify, whether the expense would be incurred regardless of volume of sales/turnover. I have always considered this valuable information in managing the business.


      MYOB generated accounts lists break them down into GENERAL, OPERATING & PAYROLL.


      I don't necessarily think that GENERAL & OPERATING are equivalent to FIXED & VARIABLE??


      To add to this, accountants seem to always produce an accounts list that is running in alphabetical order, ignoring any minor groupings. This seems to be for the very basic user.


      Does any one out there still break it down to FIXED & VARIABLE Expenses?
          LUCKIEST Guide
          CHART OF ACCOUNTS, budgets are a great tool.


          It is very important for small business owners to understand how
          their various costs respond to changes in the volume of goods or
          services produced. The breakdown of a company's underlying expenses
          determines the profitable price level for its products or services, as
          well as many aspects of its overall business strategy. A small business
          owner can use a knowledge of fixed and variable expenses to determine
          the company's break-even point and in
          making decisions related to pricing goods and services.


          Determining the fixed and variable expenses is the first step in
          performing a break-even analysis. The number of units needed to break
          even fixed costs. This equation
          provides a small business owner with a great deal of valuable
          information by itself, and it can also be changed around to answer a
          number of important questions, like whether a planned expansion will be
          profitable. Knowing how to work with information about fixed and
          variable expenses can be particularly helpful for individuals who are
          considering buying a small business. Many businesses, particularly
          franchises, are reluctant to give out information about projected
          profits, but will provide information about costs and unit prices. The
          potential purchaser can then use this information to calculate the
          number of units and the dollar volume that would be needed to make a
          profit, and determine whether these numbers seem realistic.


          Good luck, LUCKIEST
          1 of 1 people found this helpful
          • Re: CHART OF ACCOUNTS
            Lighthouse24 Ranger

            My budgets are built around (1) Capital Expenditures (usually depreciable equipment), (2) Financing Expenses (interest on credit lines, loans, and bonds), (3) Overhead (which you may call General Costs), and (4) Operating Costs (which, yes, I further break down into Fixed Costs and Variable Costs).