Author: John

Ex-Ante vs. Ex-Post: Definition, Meaning, Explanation, Example

Ex-ante and Ex-Post are Latin phrases that are commonly used in economics and financial analysis to describe different types of approaches or perspectives. These terms can seem a bit intimidating at first but they are both important and useful concepts to understand when dealing with economic or financial decisions. By …

Manufacturing Throughput Time: Definition, Calculation, Example, Improvement

Companies strive to create efficient processes to maximize profits. However, they may come across some challenges that may prevent it. Therefore, companies must track manufacturing throughput time. What is Manufacturing Throughput Time? Manufacturing throughput time represents the total duration needed to convert raw materials into finished products, covering all stages …

Restrictive Covenant: Definition, Contract, Meaning, Agreement, Example

When it comes to business and property, the term “restrictive covenant” often pops up. This might sound like complex legal jargon, but it’s actually a simple concept with significant implications. It plays a crucial role in how properties are used and businesses operate, which affects decision-making and strategies. Understanding restrictive …

Sales Margin: Definition, Formula, Calculation, Example, Accounting

Gross profit represents a company’s earnings from its products and services before considering operating and other expenses. It comes after subtracting a company’s cost of goods sold from its revenues. However, it does not provide insights into a company’s profitability. Therefore, some stakeholders may prefer sales margin as a better …

Accrued Payroll: Definition, Accounting, Journal Entry, Example, Meaning

Companies pay their employees after predefined intervals. However, accounting requires them to recognize any liability incurred for those expenses regardless of the payment. Therefore, companies use accrued payroll to track it. What is Accrued Payroll? Accrued payroll is a fundamental concept in accounting that represents the accumulated amount of employee …

Vertical Analysis vs Horizontal Analysis: What are the Differences, Comparison

Vertical and horizontal analysis provide valuable insights into multiple aspects of a company’s financial performance. However, they differ in the way they help analyze financial statements. What is Vertical Analysis? Vertical analysis (or common-size analysis) is a financial evaluation method focused on dissecting and comparing individual components within financial statements …