What is the wage?

wage costs are the costs incurred by the company due to the payment and benefits of employees. In general, this term applies to employees who are not manufacturing, regardless of whether they are considered hourly employees or paid employees. Production wages are usually processed in a somewhat different way and do not take into account wage costs. Wage costs of the company may not be equal to the actual amount of gross wage received by the employee due to benefits and possibly other taxes.

Employees who may be part of this calculation may include secretaries, supervisors and administrators. In some cases, supervisors who work on a line or participate in the production process can have all or part of their wages that are connected in a different way, as the value added to the product. Whether the costs of wages are divided depends on the company and perhaps the amount of time that the manager spends in the production of goods.

Manufacturing employees are rhodyní zvrNuta into wages simply because the costs of their work are taken into account the price of the set item. While employees without a manufactory can add value, do not directly add the value of the product produced by the company. Therefore, their expenses are usually taken into account in a different way.

usually companies calculate wage expenses in one of two different ways. Costs can be calculated at a time when the costs appear, for example when the work is completed. It may also be calculated on the basis of when the payment is made by an employee. These two types of accounting methods may have other consequences.

The accrual accounting method is the name of the accounting method that is responsible for wages when performing work. This is often seen in larger societies. In this accounting method, the costs of wages are generally mentioned as amnt employees, not the amount paid by the company. DespiteY Used terminology is still the expenditure of the company.

6 In general, small businesses consider this method easier and more convenient than the accrual accounting method. Wage costs and any other costs are not counted until the actual control is issued or money is transferred. The same applies to income. Nothing counts as income until the control is accepted.