Incremental Cash Flow Analysis
Jennifer edwards Sometimes the management may decide to incur certain changes within the business operations that may result in a change in the cash flow of the entire business. This change may…
Installment Method of Revenue Recognition
It is the method of paying for a purchase in the form of installments. These installments may be spanned over days, weeks, months or even years. This method of revenue…
Financial Leverage
Financial leverage is the type of debt that a business entity or a firm utilizes to purchase more assets in order to run business operations. A business entity utilizes financial…
Activity Based Management
Activity based management can be defined as a method where all the activities within in a business are identified and evaluated using the costing method called activity based costing. In…
Turn Over Rate Calculation
Turnover Rate is a kind of ratio that helps in evaluating the degree of employee involvement within a business. The turnover rate shows the number of employees that are leaving…
Capital Budgeting: The Net Present Value
The net present value of budgeting used the concept of the time value of the money and evaluates the project for the investment on the bases of cash flows, total…
How to do a Break Even Analysis
The break even is the point that tells a firm how much merchandise or services they need to sell so that they can cover their entire costs. A breakeven point…
How to record Intangible Assets of a Business
An intangible asset of a business can be defined as an asset that do not exist physically like other assets but have equal importance in profitable performance of a business.…
Principles of Revenue Recognition
Principle of revenue recognition is also included in general accounting principles with other common principles. This is one of the basic principles of accrual accounting. According to this principle the…
Explaining Unearned Revenues
Unearned revenue can be defined as the cash piles that are generated due to several business transactions however is are not actually earned by the business. For example advance payments…
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Multiple Predetermined Overhead Rates Definition
Shamsa Rafique Multiple Predetermined Overhead Rates Definition: A costing system in which there are multiple overhead cost pools with a different predetermined rate for each cost pool, rather than a single predetermined…
Manufacturing Cost Definition
Manufacturing Cost Definition: Manufacturing cost is equal to total direct materials cost plus direct labor cost plus Factory overhead. It is also called total factory cost. Formula of prime cost…
Least Cost Decisions
Sana Ahmed Least Cost Decisions: Revenues are not directly involved in some decisions. For example, a company that does not charge for delivery service may need to replace an old delivery truck,…
Managerial (Management) Accounting Definition
Managerial (Management) Accounting Definition: The phase of accounting concerned with providing information to managers for use in planning and controlling operations and in decision making. Click here to read more…
Joint Product Cost Analysis for Managerial Decisions and Profitability Analysis
Joint Product Cost Analysis for Managerial Decisions and Profitability Analysis: Learning Objectives: What is the importance of joint product cost analysis for management. The Securities and Exchange Commission requires that…
Inflation and Capital Budgeting Analysis
Inflation and Capital Budgeting Analysis: Learning Objectives: Does inflation impact capital budgeting analysis? Explain. Doesn't inflation have an impact in a capital budgeting analysis? The answer is qualified yes in…
Balanced Scorecard Definition
An integrated set of performance measures that is derived from and supports the organization's strategy.