التصنيف: Bookkeeping

Flexible budgeting is a dynamic budgeting model that allows you to adjust to changes in costs and revenue in real time. But don’t get caught up in comparing this type of budget to other types. What’s more  important is to apply the principles to certain parts of your budget. In short, a flexible budget requires…

ABC company is paying 25% of its earnings out to shareholders in the form of dividends, while retaining 75% of earnings within the corporation. Dividend payout ratios can be used to compare companies, though keep in mind that dividend payouts vary by industry and company maturity. As noted above, dividend payout ratios vary between companies…

The concern at present produces per day 600 numbers of each of the two products for which 2,500 labour hours are utilised. Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. Get instant access to lessons taught by experienced private equity pros and bulge bracket…

However, it can be a difficult goal to achieve for larger and more powerful customers, which may demand longer payment terms. This is necessary at the latest if you often have liquidity problems due to a high DSO value because you do not have enough cash available to pay your own invoices on time. Another…

For example, operating profit is a company’s profit before interest and taxes are deducted, which is why it’s referred to as earnings before interest and taxes (EBIT). Gross profit assesses a company’s ability to earn a profit while managing its production and labor costs. As a result, it is an important metric in determining why a…