Cost of Trade Credit
Does Trade Credit also Cost?The statement “trade-credit has no explicit cost” is a misleading statement. It is only partially correct. The trade credit is… Read Article
What is Relevant Range?
A relevant range is a level of volume or activity within which a company is expected to operate. All the budgeting and costing exercises… Read Article
Advantages of Trade Credit
Trade credit has various advantages, making it a favorite source of working capital for all levels for buyers and a promotional tool for suppliers.… Read Article
Trade Credit
What is Trade Credit?Trade credit is money that a business owes to its suppliers for goods that it has purchased. It’s like borrowing money… Read Article
Relevant Costs
Relevant costs are defined as the costs that arise in the future and are different for different alternatives. The concept of relevant costs is… Read Article
Differential / Incremental Cost
Differential Cost or Incremental Cost is the difference in total relevant cost between two alternatives. These alternatives are ‘make or buy,’ ‘two different levels… Read Article
Sources of Working Capital
Every organization needs working capital to finance its daily operations and short-term assets (current assets). Working capital is essential to ensure the smooth functioning… Read Article
How to Calculate Debt from Balance Sheet?
Before we explain how to calculate total debt from the balance sheet, it would be necessary to understand the various definitions of debt patiently.… Read Article
Growth Maximization as a Financial Management Objective
Financial management objectives play a crucial role in guiding the decision-making process within organizations. Traditionally, profit maximization has been considered the primary objective. However,… Read Article
How to Improve Liquidity by Effective Cash Management?
BackgroundImagine yourself as the captain of a ship, embarking on a daring expedition to explore uncharted territories in search of hidden treasures. As the… Read Article
Advantages and Application of Ratio Analysis
Ratio analysis is a tool to determine the financial health and operational efficiency of a company. Top management utilizes it to gauge the performance… Read Article