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… Read Article
Profit and Loss Statement
Introduction to profit and loss statementThe profit and loss statement is one of the three most important financial statements that reflect any Company’s performance… Read Article
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… Read Article
Cost Structure
Meaning of Cost StructureThe Cost structure of a company comprises of two types of costs– fixed and variable. Fixed costs are those that remain… Read Article
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.… Read Article
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… Read Article
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… Read Article
Running Balance – Meaning, Format, Benefits and More
Period basis balancing or period balancing is the usual way to maintain ledgers. However, accountants can also use a running balance to manage ledger… Read Article
CAPE Ratio
Meaning of CAPE RatioCAPE Ratio stands for Cyclically Adjusted Price Earnings Ratio. It is the price-earnings ratio calculated for ten years instead of being… Read Article
Debt Capacity – Meaning, How to Assess and More
Debt Capacity, as the name suggests, is the capacity of a company to take debt. Or, we can say it is the amount of… Read Article
Consignee – Meaning, Role, Difference and Accounting Entries
Consignee – MeaningThe Consignee and the Consignor are two terms used in the consignment business where a manufacturer or wholesale dealer sends a shipment… Read Article