Direct materials are those period costs raw materials that can be easily identified and measured. Direct labor costs include the labor costs of all employees actually working on materials to convert them into finished goods. As with direct material costs, direct labor costs of a product include only those labor…

Analyzing trends in these costs may reveal issues such as low worker productivity, equipment downtime, or wasteful processes. Monitoring and comparing conversion costs across periods or production lines supports better decision-making and operational improvements. Thus, conversion costs are all manufacturing costs except for the cost of raw materials. To illustrate,…

These are available if your firm requires document storage and expense tracking for client costs. However, since not all software offers the same features and every firm is a little different in their needs, it isn’t uncommon for some law offices to utilize multiple software. One of the many major…