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Business Operations

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How to Deal with Work in Process in Cost Accounting

When cost accounting, as you open the door of your factory on the first day of the month, you may see partially completed goods sitting on the factory floor. Those goods are considered [more…]

How to Plan Fixed Overhead Costs in Cost Accounting

In cost accounting, fixed overhead costs are costs that stay the same even as the level of activity changes. Your goal is to reduce fixed overhead costs and generate more profit. [more…]

How to Use Accounting Software in the Cloud and on the Ground

A business can do some or most of its accounting in the cloud. The term cloud refers to large-scale offsite computer servers that a business connects with over the Internet. [more…]

How to Manage Operating Cash Flows

In a small, one-owner/one-manager business, one person has to manage both profit and cash flow from profit. In larger businesses, managers who have profit responsibility may or may not have cash flow responsibility [more…]

How to Finance Your Micro-Entrepreneurial Business

At some point, your micro-entrepreneurial business may need financing to help pay for things, such as expansion. Maybe you’re a micro-entrepreneur with a home-based business that needs financing to warehouse [more…]

10 Key Points about Islamic Finance

The turbulence in the global financial market has caused an alternative system of financial intermediation to receive increased prominence in recent years – that of Islamic banking and finance. Islamic [more…]

Manipulating the Financial Statements

One of the biggest problems in the world of corporate finance (in fact, in the world of finance generally) is the manipulation of financial statements – management carrying out deliberate acts to achieve [more…]

Looking at Capital Investment and Tax

The managers of companies have to make decisions all the time. Some of these decisions can be hugely beneficial for the company, but on the other hand some can bring a company to its knees. [more…]

Looking at Risk versus Uncertainty in Corporate Finance

All businesses face risk and uncertainty, from local corner shops to major blue-chip PLCs. A key characteristic in corporate finance is managing those risks and uncertainties. Some risks and uncertainties [more…]

Managing Business Cash Effectively

Effective cash management is at the heart of every business. The phrase ‘cash is king’ is as true today as it was hundreds of years ago. Companies can make boat-loads of profits, but unless those profits [more…]

Pursuing Corporate Finance Professionally

After you decide that a career in corporate finance is absolutely your life’s calling, you next need to get to grips with some essential mathematical and computer skills that not everyone warns you about [more…]

Corporate Finance: Calculating Assets

Everything that makes up a company and everything a company owns, including the building, equipment, office supplies, brand value, land, trademarks and everything else, are considered assets. Generally [more…]

Understanding How Behaviour Affects Corporate Finance

Behavioural finance was developed as a result of the need to explain how companies and the people within them behave, as an overlap between the fields of finance and psychology. Very broadly speaking, [more…]

Corporate Finance For Dummies Cheat Sheet (UK Edition)

Corporate finance is concerned with how people work together as a single group to provide value to society. If a company consumes more value than it produces, it loses money and goes down the proverbial [more…]

Key Costs Related to Management and Cost Accounting

In accounting, a cost measures how much you pay for something. Management and cost accounting must give managers accurate cost information relevant to their management decisions. Here are several cost-related [more…]

Elements that Go Into Creating a Master Budget

A master budget is a plan created to manage a company’s manufacturing and sales activity to meet profit and cash flow goals. Creating a master budget requires careful coordination of several smaller budgets [more…]

Cost-Volume-Profit Relationships for Management and Cost Accounting

Management and cost accounting provides useful tools, such as cost-volume-profit relationships, to aid decision-making. Cost-volume-profit analysis helps you understand different ways to meet your company’s [more…]

Management and Cost Accounting For Dummies (UK Edition)

Management and cost accounting helps managers and other decision-makers understand how much their products cost, how their companies make money, and how to plan for profits and growth. To use this information [more…]

10 Ratios of Management and Cost Accounting

Ratios and other performance indicators are often found using formulas (or formulae). Accountancy has a lot of ratios, but if you want to use the information you need to go beyond learning how to calculate [more…]

4 Tips for Controlling Your Business Cash

Although bookkeepers typically are the ones who record what happens to your business's cash, they aren't the only ones who control where that cash goes. Controlling your company's money is important: A [more…]

The Relationship between Cash Flow and Profit in Business

Making profit generates cash flow — any business owner knows that. What may not be known, however, is that the actual increase in cash during a given period is invariably lower or higher than the profit [more…]

Defining Costs and Expenses in the Business World

In the world of business, costs aren’t the same as expenses. When a business incurs a cost, it exchanges a resource (usually cash or a promise to pay cash in the future) to purchase a good or service that [more…]

Identifying Product and Period Costs

The way a company classifies a cost depends on the category the cost falls into. Using generally accepted accounting principles (GAAP), business costs fall into the two general categories in the following [more…]

Which Costs Are Depreciated

When a company purchases a fixed asset, such as a computer or machine, the cost of the asset is spread over its useful life, which may be years after the purchase. Therefore, depreciation is a [more…]

How to Prepare a Depreciation Schedule

A company may use different depreciation methods for different types of assets. All businesses keep a depreciation schedule for their assets showing all the relevant details about each asset. Here is the [more…]

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