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Definition of imputed entrepreneur's wages
The imputed one Entrepreneur wages represents costs for the services of an entrepreneur. By its nature, it belongs to the additional costs, which are characterized by the fact that they are not offset by any expenses. It is based on the fact that:
Entrepreneur wages in corporations
In corporations, the people working in the function of entrepreneurs receive salaries as board members or managing directors, which are included in cost accounting as personnel costs. The problem of entrepreneurial wages does not usually arise here.
Entrepreneur wages for sole proprietorships and partnerships
In sole proprietorships and partnerships, the associate partners are not paid any salaries, their work is compensated for by the profit. Since the entrepreneur's wages must be earned from the products to be sold, it is essential to use them as imputed costs to apply.
The soap formula is suggested as the basis for calculating the imputed entrepreneur's wages. If several full-time partners are involved in a company, the amount calculated using the above equation should be used for 2 partners 75 %, for 3 partners 67 %, for 4 partners 62 % and for more than 4 partners 60 % each. Such a schematic calculation is problematic because it results in too low entrepreneurial wages in the case of low sales. The imputed entrepreneur's wages used in cost accounting should, however, correspond to the remuneration that the respective entrepreneur would receive in a comparable company with the same work performance - including social benefits.