LIFO's Oudated Approach
LIFO’s outdated approach has opened the door to more and more companies using either FIFO (First In First Out) or average cost inventory …
Continue ReadingShowing items from finance
EBITDA Multiples - Explained Clearly
The earnings before interest, tax, depreciation, and amortization can be extracted from the publicly available information in a company’s …
Continue ReadingFraudulent Accounting and Enron Scandal Explained
A detailed look at the Enron accounting scandal reveals the circumstances that made it possible for Enron to succeed in deceiving the public. There …
Continue Reading10 Major Accounting Scandals That Caught the Public's Eye: What Do They Have in Common?
Before digging into the dirty details of each of these major accounting scandals, we’ll take a look at some of the tools that were used to first …
Continue ReadingWhat is Gross Profit Ratio?
The gross profit ratio indicates the proportion of each sales dollar available for overhead expenses and profits, after deducting the cost of products …
Continue ReadingFree Downloadable Example: Corporate Capitalization Policy for Fixed Assets
Small-business organizations are now required to create their capitalization policies as part of their compliance with the Sarbanes Oxley Act 404 …
Continue ReadingOverview of Capitalization Policies for Fixed Assets of a Corporation
Capitalization policies for fixed assets of a corporation are essential for a company’s property acquisition, management & disposition. They …
Continue ReadingWhat Are the Major Criticisms of the Process Costing Method
The process costing method entails accumulating costs incurred over a period of time and averaging such accrued costs over all the units produced …
Continue ReadingFree Downloadable Excel Pro Forma Income Statement for Small and New Businesses
Find a free, downloadable Excel pro forma income statement that owners of start-up or small-venture businesses can utilize. It would be best for …
Continue ReadingWhat is Rolling EBITDA? Definition and Explanation
EBITDA is a popular metric to determine the ability of a company to create value, and it can make comparisons among diverse firms. Read on for the …
Continue ReadingUnderstanding How to Calculate the Material Burden Rate
The cost of a manufactured product is the sum of the costs of materials, labor, and manufacturing overhead. Of these, materials and labor are direct …
Continue ReadingLearn How to Calculate Gross Profit Margin: Explanation With Examples
What does it take for a company to calculate its gross profit margin? Well, first it involves taking sales revenue and deducting the costs of goods …
Continue Reading