Ratios that are likely to help the management
Ratio analysis is the process that involves analyzing and interpreting data coming from different financial accounts, such as the balance sheet and profit & loss account. It is comparing one number with another. It interprets financial statements easy to do for the users, including shareholders, investors, creditors, the government, and analysts. Ratio analysis is an […]
What is Activity-Based Costing (ABC)?
Activity-based costing is a method that assigns costs to the different activities involved in making a product to allocate a company’s funds equitably. The ABC approach was first developed by Robert S. Kaplan and David P. Norton, as well as the ABC Research Group at Harvard Business School (HBS), in 1976 and introduced by Kaplan and […]
What is the Meaning of the Ad Valorem?
Ad valorem is a Latin phrase meaning “according to value.” In essence, it is used to describe a tax levied based on the value of the item being taxed. It is commonly used in finance and taxation to refer to a tax or assessment that is based on the value of a particular item or […]
What Are Dependent and Independent Investments?
In evaluating the investment proposals presented to management, it is important to know the possible interrelationships between pairs of investment proposals. A given investment proposal may be economically independent of, or dependent on, another investment proposal. Economically Dependent Investments An investment proposal is economically independent of a second investment if the cash flows (or the […]
Evaluation of Transfer Pricing Policies
Transfer pricing refers to the setting of prices for goods sold between different entities within the same company, often located in different countries. It is the process of determining the price of goods or services exchanged between various divisions or subsidiaries of the same business or organization, frequently spread across international borders. For instance, imagine […]
What is financial reconstruction? Objectives and Impacts
Financial reconstruction refers to the process of revamping or restructuring a company’s financial situation to improve its viability and profitability. This can be necessary when a company faces significant financial difficulties that cannot be resolved through other measures, such as cost-cutting. Financial reconstruction aims to help companies become more financially stable and sustainable by addressing […]
What is Segment Contribution Margin
Segment Contribution Margin In the world of financial markets, segment contribution margin is used as a way to determine the margin that will be required to sell a product. The segment contribution margin is the margin that will be required to sell a product in the segments that are being analysed. The segment contribution margin […]
Features of the Best Business Valuation Software
Accurate and effective business valuation is now necessary in making a decision, even for a quick merger, an evaluation of market value, or a future growth strategy. Appropriate software in business valuation would be very handy to smoothen the process and gain insight into possible action. The best business valuation software unites all the details […]
What is a Hedge Fund – Meaning and Purpose
Hedge funds have long been a topic of intrigue and curiosity for many investors and financial enthusiasts. These investment vehicles, known for their complex strategies and substantial returns, often remain shrouded in mystery. But what exactly is a hedge fund? In simple terms, a hedge fund is an alternative investment vehicle that pools capital from […]
What Are the Benefits of Forensic Accounting?
Forensic accounting is the application of accounting, auditing, and investigative skills to collect, analyze, and interpret financial information for use in legal proceedings. Forensic accounting studies financial records to identify illegal or unethical behaviour. It is applied to uncover financial fraud. Generally, forensic accountants can testify as expert witnesses on accounting issues such as valuations, […]