MARKETING LEVER is anything that provides positional advantage or power to act effectively: Potential levers may be price, brand name, corporate image, broad distribution, effective advertising, etc.
COMPANY LIMITED BY SHARES is where the members' personal liabilities are limited to the par value of their shares. a company limited by guarantee.
PERCENTAGE OF COMPLETION METHOD OF ACCOUNTING is instituted if your revenues exceed $10,000,000 (3-year average) or your contracts will not be completed within a two-year period, you are generally required to use the percentage of completion accounting for contracts. There are many advantages to using to percentage of completion method including: a. It is the best measurement of income; b. Percentage of completion normally needs to be computed for financial statement purposes eliminating confusing timing differences from tax to financial statements; c. There is no increase in alternative minimum taxable income; d. Losses can be recognized on contracts before the job is complete; e. It is useful in leveling taxable income, permitting use of lower tax brackets each year. When using the percentage of completion method, it is important to carefully compute the percent complete, for it may have a great impact on your taxable income. Estimated costs to complete the contract, a component of calculating the percent to complete, determine what your taxable income will be. Also, carefully reviewing the over-head allocation may result in lower tax.
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