Some examples of spheres that we see in daily life includes balls, globes, decorative lights, oranges, etc. The simplest measurement that can be made on a sphere is its radius. The volume of the sphere is calculated using its radius. This space occupied depends on the shape of the object.An important check before calculating the … Continue reading “VOLUME Definition & Usage Examples”
Economic profit does not indicate whether or not a business decision will make money. It signifies if it is prudent to undertake a specific decision against the opportunity of undertaking a different decision. As shown in the simplified example in the image, choosing to start a business would provide $10,000 in terms of accounting profits. … Continue reading “Opportunity Cost: Definition and Examples”
For the AUD, FAR, and REG sections, your total score is a weighted combination of scaled scores from multiple-choice questions and task-based simulations. Multiple-choice questions count for 50% of the total score and tasked-based simulations count for the other 50%. It’s important to understand that 75 doesn’t represent a percentage of the total questions you … Continue reading “What is the Uniform CPA Examination?”
The book value concept is overrated, since there is no direct relationship between the market value of an asset and its book value. At best, book value can only be considered a weak replacement for market value, if no other valuation information is available about an asset. The major limitation of the formula for the … Continue reading “Book Value of Assets: What It Is and How to Calculate It”
Its membership consisted of between 18 and 21 representatives of accounting firms, corporate executives, and academics. These examples are programmatically compiled from various online sources to illustrate current usage of the word ‘all-points bulletin.’ Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Virtually all public corporations that operate … Continue reading “All-points bulletin Definition & Meaning”
Companies looking to expand their product line need to understand their cost structure. Cost accounting helps management plan for future capital expenditures, which are large plant and equipment purchases. Cost accounting has elements of traditional bookkeeping, system development, creating measurable information, and input analysis. For many firms, cost accounting helps create and measure business strategy … Continue reading “Accounting cost definition”
The idea is that the combined efforts of two or more entities are greater than those entities alone. In business terms, however, though companies may aim to achieve synergy by joining forces, the end result often lacks synergy, making the endeavor a wasted one. Synergy usually arises when two persons with different complementary skills cooperate. … Continue reading “Synergy Definition & Meaning”
Straight line depreciation is the most commonly used and straightforward depreciation method for allocating the cost of a capital asset. It is calculated by simply dividing the cost of an asset, less its salvage value, by the useful life of the asset. The estimated useful life value used in our calculations are for illustration purposes. … Continue reading “Straight Line Basis Overview, How To Calculate, Example”
COGS includes the expenses necessary to manufacture a product including the labor, materials, and overhead expenses. SG&A costs are the residual expenses necessary to run the organization and incur costs less specifically tied to the cost of making the product. Once SG&A is deducted from gross profit – assuming there are no other operating expenses … Continue reading “Definition of Selling General and Administrative SG&A Expenses Gartner Finance Glossary”
Companies may return a portion of stockholders’ equity back to stockholders when unable to adequately allocate equity capital in ways that produce desired profits. This reverse capital exchange between a company and its stockholders is known as share buybacks. Shares bought back by companies become treasury shares, and their dollar value is noted in the … Continue reading “What Is Shareholders Equity?”
