Find Total Cost from Average Total Cost: Easy Guide

The core of managerial accounting relies on a deep understanding of cost structures, and the ability to accurately determine total costs is crucial for sound financial decision-making. Businesses use total cost, which represents the sum of all expenses incurred in producing goods or services, to set prices and evaluate profitability, while average total cost (ATC) is the total cost divided by the quantity produced, which the Chartered Institute of Management Accountants recognizes as a key performance indicator. The relationship between these figures is essential, especially when leveraging tools like Microsoft Excel for data analysis; you can easily understand how to find total cost from average total cost by multiplying the average total cost by the quantity of goods produced. Cost accountants, frequently working in sectors ranging from manufacturing hubs to service industries, depend on these calculations to provide insights that guide strategic planning and operational efficiency.

Understanding Total Cost: An Introductory Overview

Total Cost (TC) is a foundational concept in business, representing the comprehensive expenses a company undertakes to generate a specific amount of goods or services. It’s not just about adding up the obvious bills.

It’s about recognizing the complete economic picture. A solid grasp of TC is indispensable for making sound business decisions.

Defining Total Cost: More Than Just the Sum of Bills

At its core, Total Cost is the aggregate of all expenditures incurred to achieve a certain production level. This is where the understanding goes beyond just the simple "bills" that are paid.

This includes both explicit and implicit costs. Explicit costs are your direct, out-of-pocket expenses – the money you physically spend.

Implicit costs, on the other hand, represent the opportunity cost of using resources already owned by the firm. Think of it as the potential income forgone by not using those resources in their best alternative use.

Explicit Costs: The Obvious Outlays

Explicit costs are those easily identifiable cash outflows. Examples include:

• Wages paid to employees
• Payments for raw materials
• Rent for office or factory space
• Utility bills

These are the costs you directly account for in your financial statements. They are concrete and easily measurable.

Implicit Costs: The Hidden Expenses

Implicit costs are less obvious but equally important. These are the opportunity costs associated with using your business's own resources. Consider these examples:

• The salary you could be earning if you weren't working in your own business.
• The rental income you could be receiving if you leased out the building your business occupies.
• The interest you could be earning if you sold the equipment your company owns and put the proceeds in the bank.

These implicit costs represent what you're giving up by using these resources in your current business. Recognizing implicit costs provides a more accurate picture of economic profitability.

Why Total Cost Matters: A Cornerstone of Sound Business Strategy

Understanding Total Cost is crucial for several key business functions:

• Informed Pricing Strategies: Knowing your true costs allows you to set prices that cover expenses and generate profit. Underestimating costs can lead to underpricing and financial losses.

• Profitability Assessments: Accurate cost information is vital for determining the true profitability of your products or services. It helps you identify which areas are most profitable and where you might need to cut costs.

• Overall Financial Management: Total Cost analysis allows you to make more informed decisions about resource allocation, investment opportunities, and cost control measures. This leads to better financial performance and long-term sustainability.

In essence, a thorough understanding of Total Cost empowers businesses to make data-driven decisions, optimize resource allocation, and achieve sustainable profitability. It’s a fundamental building block for long-term success.

The Total Cost Formula: Demystifying the Calculation

Building upon our foundational understanding of Total Cost, let's now dissect the formula that provides a practical means of quantifying it. This isn't just about plugging numbers into an equation; it's about understanding the relationship between production costs and output volume. By demystifying the Total Cost formula, we empower businesses to make data-driven decisions about pricing, production, and profitability.

Unveiling the Formula: TC = ATC

**Q

At its core, the Total Cost formula is remarkably straightforward:

**TC = ATC Q

**

Let's break down each component:

• TC stands for Total Cost. This represents the total expenses incurred in producing a specific quantity of goods or services. It's the ultimate figure we're aiming to calculate.

• ATC represents Average Total Cost. This is the per-unit cost of production. It reflects the average expense associated with producing each individual item or service.

• Q stands for Quantity of Output. This represents the number of units produced. It's the volume of goods or services that the business is generating.

The formula reveals a fundamental truth: Total Cost is the Average Total Cost multiplied by the Quantity of Output. This simple equation allows businesses to quickly estimate their total production expenses based on their average per-unit cost and the number of units they intend to produce.

Practical Applications: Real-World Scenarios

Let's explore how businesses utilize this formula in practice:

Imagine a small bakery that specializes in artisanal bread.

After carefully analyzing their expenses, they determine that their Average Total Cost (ATC) per loaf is $4.00.

Now, they want to estimate the Total Cost of producing 150 loaves for a weekend market.

Using the formula, they can easily calculate:

TC = $4.00** 150 = $600

Therefore, the estimated Total Cost of producing 150 loaves of bread is $600.

This information is invaluable for setting prices, assessing profitability, and making informed decisions about production levels.

Here's another scenario:

A manufacturing company produces widgets.

They have calculated their Average Total Cost (ATC) per widget to be $12.50.

If they plan to produce 5,000 widgets in a given month, their Total Cost would be:

TC = $12.50 * 5,000 = $62,500

This Total Cost figure helps them determine the overall expense of their production run.

Understanding the formula is critical for calculating anticipated costs, and it can be used across industries.

Businesses use this to make realistic revenue projections.

By grasping the relationship between Total Cost, Average Total Cost, and Quantity of Output, businesses gain a powerful tool for managing their finances and optimizing their operations.

Deconstructing Total Cost: Fixed vs. Variable Costs

Following our exploration of the Total Cost formula, we now shift our focus to the individual components that constitute this crucial metric. Understanding the nature and behavior of these components – specifically Fixed Costs and Variable Costs – is essential for effective cost management and strategic decision-making. Let's unpack these two elements.

Fixed Costs (FC): The Constants

Fixed Costs (FC) represent those expenses that remain relatively constant, irrespective of the level of production or sales within a given period. They are the bedrock of your cost structure, the financial obligations that persist whether you produce one unit or a thousand.

These costs are typically time-related, meaning they accrue over a specific period, such as a month or a year. Classic examples of Fixed Costs include:

• Rent or mortgage payments for your facilities.
• Insurance premiums covering your business operations.
• Salaries of permanent staff who provide essential support.
• Depreciation on equipment.
• Property taxes.

It's important to recognize that Fixed Costs are fixed only within a certain range of activity. For example, if your business expands significantly, you might need to rent additional space, leading to an increase in your Fixed Costs.

However, within your current operational scope, these costs remain predictable and relatively stable.

The Impact of Fixed Costs on Total Cost

Fixed Costs have a significant impact on Total Cost, particularly at different production volumes. When production volume is low, Fixed Costs comprise a larger proportion of the Total Cost per unit.

As production volume increases, the impact of Fixed Costs on a per-unit basis diminishes. This is because the same Fixed Costs are spread over a larger number of units, resulting in a lower Average Fixed Cost (AFC).

For example, imagine a small bakery with monthly rent of $2,000. If they bake 100 loaves of bread, the Fixed Cost per loaf is $20. But if they bake 1,000 loaves, the Fixed Cost per loaf drops to $2. This highlights the advantage of scale in reducing per-unit Fixed Costs.

Variable Costs (VC): The Fluctuators

In contrast to Fixed Costs, Variable Costs (VC) are expenses that change directly in proportion to the level of production or sales. They are the dynamic elements of your cost structure, fluctuating with every unit you produce or every service you render.

These costs are directly tied to the production process, meaning they increase as you produce more and decrease as you produce less. Common examples of Variable Costs include:

• Raw materials used in production.
• Direct labor wages for workers involved in production.
• Energy consumption directly related to production.
• Packaging and shipping costs.
• Sales commissions.

Unlike Fixed Costs, Variable Costs are generally consistent on a per-unit basis, regardless of the overall production volume.

How Variable Costs Influence Total Cost

Variable Costs exert a direct and proportional influence on Total Cost. As output increases, Variable Costs increase accordingly, and vice versa.

This direct relationship means that effective management of Variable Costs is crucial for controlling overall production costs.

For example, a furniture manufacturer's lumber costs will rise proportionally as they build more chairs. Similarly, a consulting firm's travel expenses will increase as they take on more clients requiring on-site visits. Understanding this direct correlation enables businesses to forecast Total Costs more accurately based on projected sales volume.

Relating FC and VC to TC: TC = FC + VC

The fundamental relationship between Fixed Costs, Variable Costs, and Total Cost is expressed by the equation:

TC = FC + VC

This simple yet powerful equation highlights that Total Cost is simply the sum of all Fixed Costs and all Variable Costs.

Understanding the proportions between these two cost categories is essential for effective cost control, pricing strategies, and overall business decision-making.

For instance, a business with high Fixed Costs and low Variable Costs might benefit from strategies to increase sales volume to spread those Fixed Costs across more units. Conversely, a business with low Fixed Costs and high Variable Costs might focus on optimizing production processes to reduce per-unit Variable Costs.

By diligently monitoring and managing both Fixed and Variable Costs, businesses can gain a clear understanding of their cost structure and make informed decisions to improve profitability and achieve long-term financial success.

Average Total Cost (ATC): A Deeper Dive into Per-Unit Expenses

Following our exploration of the Total Cost formula, we now shift our focus to the individual components that constitute this crucial metric. Understanding the nature and behavior of these components – specifically Average Total Cost – is essential for effective cost management and strategic decision-making.

Unveiling Average Total Cost

Average Total Cost (ATC) offers a different perspective than simply looking at total costs. It reveals the cost incurred for each unit of output.

It's calculated by dividing the Total Cost (TC) by the Quantity (Q) of goods or services produced: ATC = TC / Q.

Think of it as the "price tag" of producing a single item when considering all costs, both fixed and variable.

The Significance of ATC

Why is ATC so important? It provides crucial insights into a company's production efficiency and profitability.

• Cost-Effectiveness Assessment: ATC allows businesses to evaluate the cost-effectiveness of their production process at various output levels. By understanding how ATC changes with production volume, companies can identify areas for cost reduction and process optimization.

• Optimal Production Levels: Observing the behavior of ATC can highlight the most efficient scale of production. This helps businesses determine the production level where the cost per unit is minimized.

ATC and Decision-Making

Understanding ATC is paramount for several strategic business decisions:

• Pricing Strategies: ATC serves as a baseline for setting prices. While market factors also play a role, knowing the cost of producing each unit is essential for ensuring profitability. Prices must, at a minimum, cover the ATC in the long run to guarantee the business's financial sustainability.

• Production Planning: Analyzing the ATC curve (a graph showing how ATC changes with output) helps businesses determine the optimal production volume. This level balances economies of scale with the potential for rising costs due to inefficiencies at higher output levels.

• Investment Decisions: When considering investments in new equipment or facilities, businesses can use ATC to project the impact on per-unit costs. This helps assess whether the investment will ultimately reduce ATC and improve profitability.

In essence, Average Total Cost is more than just a number; it’s a key performance indicator (KPI) that can unlock a deeper understanding of production economics, enabling businesses to make informed choices and drive sustainable growth.

ATC, AFC, and AVC: Unveiling the Interrelationships

Following our exploration of Average Total Cost, we now shift our focus to the intricate relationship between Average Total Cost (ATC), Average Fixed Cost (AFC), and Average Variable Cost (AVC). Understanding the interplay of these components is essential for a comprehensive grasp of cost behavior and effective decision-making in any business.

Decoding the Formula: ATC = AFC + AVC

The fundamental formula governing the relationship between these average costs is deceptively simple: ATC = AFC + AVC. This equation underscores that the Average Total Cost is simply the sum of the Average Fixed Cost and the Average Variable Cost at any given level of output. Understanding the individual behavior of AFC and AVC is crucial to interpreting the overall trend in ATC.

Average Fixed Cost (AFC): The Declining Curve

Average Fixed Cost (AFC) represents the fixed costs allocated to each unit produced. Because fixed costs remain constant regardless of production volume, AFC always decreases as output increases. This inverse relationship is due to the fixed cost being spread over a larger number of units.

For example, if a company has monthly rent of $1,000, the AFC when producing 100 units is $10 per unit. If production increases to 1,000 units, the AFC drops to just $1 per unit. This principle highlights the importance of achieving higher production volumes to lower the per-unit burden of fixed costs.

Average Variable Cost (AVC): The U-Shaped Curve

Average Variable Cost (AVC), on the other hand, reflects the variable costs attributed to each unit produced. Unlike AFC, AVC typically exhibits a U-shaped curve. Initially, as production increases, AVC may decrease due to economies of scale, such as specialization of labor or bulk discounts on materials.

However, as production continues to rise, AVC eventually begins to increase due to diseconomies of scale, such as diminishing returns to labor or increased logistical complexities.

The Combined Impact on Average Total Cost (ATC)

The interplay between AFC and AVC shapes the behavior of ATC. Initially, ATC declines sharply as AFC decreases rapidly with increasing production. The decrease in AFC outweighs any potential increase in AVC. As production continues to increase, the decline in AFC slows down, and AVC begins to rise.

The point where AVC's increase starts to offset the decrease in AFC marks the bottom of the ATC curve. This point represents the most efficient scale of production, where the average cost per unit is minimized. Operating at this point maximizes profitability.

Visualizing the Cost Curves: A Graphical Representation

A graph depicting the AFC, AVC, and ATC curves provides a clear illustration of their relationship.

• The AFC curve is a downward-sloping curve, demonstrating the inverse relationship between output and average fixed cost.
• The AVC curve is U-shaped, reflecting the initial economies of scale followed by diseconomies of scale.
• The ATC curve is also U-shaped, but its minimum point occurs to the right of the AVC's minimum point due to the influence of AFC.

Analyzing these cost curves provides businesses with valuable insights into optimal production levels and cost-saving strategies.

Implications for Business Decision-Making

Understanding the relationship between ATC, AFC, and AVC is critical for various business decisions, including:

• Pricing Strategies: Determining a selling price that covers all costs and generates a profit margin.
• Production Planning: Identifying the optimal production volume to minimize average costs.
• Cost Control: Identifying areas where costs can be reduced, such as negotiating better deals with suppliers or improving production efficiency.

By carefully analyzing these cost components and their interrelationships, businesses can make informed decisions that drive profitability and ensure long-term success.

Real-World Applications: Total Cost in Various Industries

Understanding Total Cost is one thing; seeing it in action is another. Let's move beyond theoretical concepts and examine how businesses across diverse industries utilize Total Cost calculations to inform their decisions and manage their operations effectively. These examples will show how universally important total cost accounting truly is.

Restaurants: Costing Meals Served – A Culinary Calculation

Restaurants operate on notoriously thin margins. Accurately costing each meal is paramount to profitability. They must understand the Total Cost associated with each dish to price it competitively and ensure a healthy bottom line.

Determining ATC for Menu Items

A restaurant meticulously tracks all expenses related to a particular menu item. This includes the cost of ingredients (variable cost), labor involved in preparation (variable cost), and a portion of fixed costs like rent, utilities, and equipment depreciation allocated to that dish.

By dividing the Total Cost by the number of servings sold, they arrive at the Average Total Cost (ATC) per meal.

Example: From Cost to Menu Price

Let's say a restaurant calculates its ATC for a popular pasta dish to be $8.

This includes the cost of pasta, sauce, vegetables, chef labor, and allocated overhead.

If the restaurant serves 250 of these pasta dishes in a month, their Total Cost for this item is $2,000 (250 meals

**$8/meal).

The restaurant might then mark up the ATC by a percentage to arrive at a selling price – perhaps setting the menu price at $16 to achieve a 100% markup.

This ensures they cover their costs and generate a profit.

Construction Companies: Estimating Project Costs – Building a Budget

Construction projects are complex undertakings with numerous variables. Accurate cost estimation is crucial for bidding competitively and ensuring projects remain financially viable.

ATC per Square Foot: A Key Metric

Construction companies often use Average Total Cost per square foot as a benchmark for estimating project costs.

This metric encompasses all expenses, including materials, labor, permits, equipment rental, and overhead, divided by the total square footage of the project.

Projecting Total Costs for New Builds

A construction company estimating the cost of a new office building might determine their ATC to be $175 per square foot based on historical data and current market conditions.

For a 5,000-square-foot building, they would estimate a Total Cost of $875,000 (5,000 sq ft** $175/sq ft).

This figure forms the basis of their bid and helps them manage costs throughout the project. Underestimating can lead to significant financial losses.

The Risk of inaccurate estimating

Conversely, overestimating may lead to rejection of their bid.

The importance of accurate cost accounting and cost tracking is the key here.

Software Development Companies: Calculating Development Expenses – Coding for Profit

Software development involves significant upfront costs and ongoing maintenance. Understanding the Total Cost of developing a software product is critical for pricing it appropriately and achieving profitability.

ATC per Line of Code: A Granular Approach

Some software companies use the Average Total Cost per line of code (LOC) as a metric to estimate development expenses.

This method involves tracking all costs associated with the project – including developer salaries, software licenses, hardware costs, project management, and testing – and dividing that total by the number of lines of code produced.

The Value of Estimating LOC

It must be mentioned that the exact LOC (lines of code) required for software development is difficult to predict. Software development companies can leverage previously developed programs in combination with team skill levels to estimate the range that a new project might fall in.

Example: Costing the Code

A software company might determine their ATC to be $12 per line of code.

For a project estimated to require 20,000 lines of code, the Total Cost would be $240,000 (20,000 LOC * $12/LOC).

This figure helps them determine the price they need to charge for the software to recoup their investment and generate a profit.

This simplistic model does not account for many possible factors, like code complexity, developer expertise, and other time-associated elements. However, it’s an easy metric to track costs and revenue in an aggregated view.

Moving Beyond Lines of Code

While lines of code serve as a simplistic proxy for measurement, modern software development often relies on more sophisticated metrics, such as feature points or story points.

However, LOC-based estimations offer a tangible starting point for initial budget projections.

The Role of Cost Accounting in Managing Total Cost

Understanding Total Cost is paramount, but how do businesses ensure they're accurately capturing and analyzing these crucial figures? This is where cost accounting steps in. Let's explore the vital role of cost accounting in effectively managing total cost.

Defining Cost Accounting and Its Significance

Cost accounting is a specialized branch of accounting. It focuses on identifying, measuring, and reporting the costs associated with a company's production and operational activities.

It goes beyond basic bookkeeping. Cost accounting delves into the intricacies of cost behavior and allocation. This provides management with detailed insights into where and how resources are being consumed.

How Cost Accounting Supports Total Cost Management

Cost accounting is essential for businesses looking to understand and manage their total costs effectively. It offers a range of tools and techniques to:

• Track Costs Accurately:

  Cost accounting systems meticulously track all costs. They categorize them as direct materials, direct labor, and overhead. This detailed tracking provides a clear picture of the various cost drivers within the organization.

• Analyze Cost Behavior:

  By understanding how costs change with production volume, businesses can predict future costs and make informed decisions about pricing, production levels, and resource allocation. This is vital for optimizing profitability.

• Allocate Overhead Costs:

  Overhead costs, like rent and utilities, can be challenging to allocate accurately. Cost accounting provides methodologies. They ensure these costs are assigned fairly to different products or services.

• Provide Insights for Decision-Making:

  Cost accounting provides data-driven insights that support a wide range of management decisions. They range from pricing strategies to investment decisions and process improvements. It's the bedrock of sound financial planning.

Cost Accounting Techniques for Enhanced Cost Control

Several cost accounting techniques help businesses manage their total cost more effectively. Some of the most common include:

• Standard Costing:

  This technique involves setting predetermined costs for materials, labor, and overhead. These standards are then compared to actual costs. This variance analysis helps identify areas where costs are out of control.

• Activity-Based Costing (ABC):

  ABC assigns costs to specific activities, then allocates those costs to products or services based on their consumption of those activities. This provides a more accurate view of the true cost of each product or service. This is especially important in complex manufacturing or service environments.

• Marginal Costing:

  Marginal costing focuses on the incremental cost of producing one additional unit of output. This information is useful for making decisions about pricing, accepting special orders, and determining the optimal production level.

The Benefits of Effective Cost Accounting

Investing in a robust cost accounting system yields numerous benefits, including:

• Improved Cost Control:

  Accurate cost tracking and analysis enable businesses to identify and address areas of inefficiency. This leads to significant cost savings.

• Better Pricing Decisions:

  Understanding the true cost of products or services allows businesses to set prices that are competitive and profitable.

• Enhanced Profitability:

  By optimizing costs and improving efficiency, businesses can increase their profitability and improve their bottom line.

• More Informed Decision-Making:

  Cost accounting provides managers with the information they need to make data-driven decisions. This is crucial for navigating the complexities of today's business environment.

In conclusion, cost accounting isn't just about tracking numbers; it's about providing valuable insights. These insights empower businesses to manage their total costs, optimize their operations, and achieve sustainable profitability. It's a cornerstone of successful financial management.

Analytical Tools: Leveraging Cost-Volume-Profit (CVP) Analysis

Understanding Total Cost is paramount, but how do businesses translate this understanding into proactive financial strategies? This is where Cost-Volume-Profit (CVP) analysis becomes an indispensable tool, providing a framework for examining the intricate relationships between costs, sales volume, and profitability. Let's explore how CVP analysis can empower businesses to make informed decisions and optimize their financial performance.

Understanding the Essence of CVP Analysis

At its core, CVP analysis is a powerful analytical technique used to examine how changes in costs (both fixed and variable) and sales volume impact a company's profit.

It’s a strategic lens through which businesses can assess the financial consequences of various decisions, from pricing strategies to production targets.

CVP analysis hinges on a few key assumptions, including:

• Linear cost and revenue functions (meaning costs and revenues change proportionately with volume).
• Constant sales mix (if a company sells multiple products).
• Inventory levels remain relatively stable.

While these assumptions simplify reality, they provide a valuable starting point for understanding cost-volume-profit relationships.

Key Components of CVP Analysis

Several components are essential in conducting a CVP analysis. Let’s consider a few.

Fixed Costs

As previously discussed, these costs remain constant regardless of production or sales volume within a relevant range. Understanding your fixed costs is the foundation of effective CVP analysis.

Variable Costs

These costs fluctuate directly with the level of production or sales. Knowing the per-unit variable cost is crucial for determining the contribution margin.

Sales Price

The price at which a product or service is sold. This, combined with volume, generates total revenue.

Volume or Quantity

The number of units produced and sold. CVP analysis helps determine the optimal volume needed to achieve desired profit levels.

Contribution Margin

This is the difference between the sales price per unit and the variable cost per unit. It represents the amount of revenue available to cover fixed costs and generate profit. The contribution margin ratio (contribution margin divided by sales revenue) is a key metric in CVP analysis.

Determining the Break-Even Point

One of the most valuable applications of CVP analysis is calculating the break-even point.

The break-even point represents the level of sales at which total revenues equal total costs, resulting in zero profit or loss.

Break-Even Point in Units

This can be calculated by dividing total fixed costs by the contribution margin per unit:

Break-Even Point (Units) = Fixed Costs / (Sales Price per Unit - Variable Cost per Unit)

Break-Even Point in Sales Dollars

This can be calculated by dividing total fixed costs by the contribution margin ratio:

Break-Even Point (Sales Dollars) = Fixed Costs / Contribution Margin Ratio

Knowing the break-even point provides a critical benchmark for businesses.

It indicates the minimum level of sales needed to avoid losses.

Utilizing CVP Analysis for Target Profit

Beyond determining the break-even point, CVP analysis can be used to determine the sales volume required to achieve a specific target profit.

Target Profit in Units

Target Sales (Units) = (Fixed Costs + Target Profit) / (Sales Price per Unit - Variable Cost per Unit)

Target Profit in Sales Dollars

Target Sales (Sales Dollars) = (Fixed Costs + Target Profit) / Contribution Margin Ratio

By incorporating target profit into the equation, businesses can set realistic sales goals and develop strategies to achieve them.

Sensitivity Analysis with CVP

CVP analysis also facilitates sensitivity analysis, which examines how changes in underlying assumptions (such as sales price, variable costs, or fixed costs) impact profitability.

This allows businesses to assess the potential risks and rewards associated with different scenarios.

For example, a company might analyze how a price increase or a reduction in variable costs would affect its break-even point and target profit.

Benefits of Implementing CVP Analysis

The implementation of CVP analysis offers numerous benefits:

• Informed Decision-Making: CVP provides valuable insights that support informed decisions regarding pricing, production, and marketing.
• Profit Planning: It helps in setting realistic profit targets and developing strategies to achieve them.
• Risk Assessment: Sensitivity analysis allows businesses to assess the potential impact of changes in key variables on profitability.
• Resource Allocation: CVP analysis can guide the allocation of resources to the most profitable products or services.
• Performance Evaluation: It provides a framework for evaluating the performance of different business segments or product lines.

By integrating CVP analysis into their financial planning process, businesses can gain a deeper understanding of the relationship between costs, volume, and profit, ultimately leading to improved financial performance and sustainable growth.

So, there you have it! Figuring out how to find total cost from average total cost really isn't as intimidating as it might seem at first. Just remember that simple formula, and you'll be calculating your total costs like a pro in no time. Now go forth and conquer those financial reports!