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Variable Costs

Expenses that change in direct proportion to sales or production, such as raw materials or commissions. Key for understanding contribution margins. Helps in pricing decisions.

Taxes and Licenses Expense

Costs for business permits, registration, or property taxes. Necessary to operate legally. Recurs annually or periodically.

Audit Opinion

The conclusion issued by an auditor on financial statements. Types include unqualified (clean), qualified, adverse, and disclaimer. It influences stakeholders’ confidence.

Utilities Expense

Costs of electricity, water, gas, and internet. Essential for daily operations. Variable depending on usage and seasonality.

Cleaning and Janitorial Expense

Payments for maintaining cleanliness of offices or facilities. Necessary for workplace safety and comfort. Often outsourced to contractors.