Changes in Net Working Capital – All You Need to Know
Net working capital (NWC) is significant for a business, or we can say it is the lifeline of a company. It allows the company to meet its short term …
Holding cost vs Ordering cost – All You Need To Know
Most businesses overlook their real inventory cost. In reality, the inventory price is more than its purchase price. It is because it includes the cost of ordering, as well …
Profit and Loss Statement
Introduction to profit and loss statement The profit and loss statement is one of the three most important financial statements that reflect any Company’s performance and financial standing over …
Currency Arbitrage – Meaning, Types, Risk and More
Arbitrage is a trading strategy in finance that is possible due to the inefficiencies in a market. And, currency arbitrage is no different. In this, a currency trader benefits …
Cost Structure
Meaning of Cost Structure The Cost structure of a company comprises of two types of costs- fixed and variable. Fixed costs are those who remain constant up to a …
Quality Costing – Meaning, Types, How to Calculate and More
Quality costing or Quality cost or Cost of Quality (COQ) constitute the costs that a company incurs to come up with a quality product. Or, we can say it …
Life Cycle Cost – Meaning, Importance, Analysis and More
Life Cycle Cost (LCC), or whole-life costing, as the name suggests, deals with the total cost of an item during its lifetime. Or, we can say, it is the …
Gross Profit Percentage – Meaning, Example, Advantages and more
What is the Gross Profit Percentage? Gross profit (GP) percentage is a measure of a firm’s profitability at a gross level. It is expressed in terms of the percentage …
Running Balance – Meaning, Format, Benefits and More
Period basis balancing or period balancing is the usual way to maintain ledgers. Accountants, however, can use a running balance to manage ledgers accounts as well. Running balance (RB) …
Units of Production Depreciation: Meaning, Calculation, Benefits and More
Units of Production Depreciation is a method for calculation of depreciation. It takes into account asset usage or the number of units an asset produces during the year to …
