Inventory counting is a long and hectic process for companies. However, it is essential to avoid inventory loss. Companies may use various methods to conduct this count. One of these includes cycle counting. What is Cycle Counting? Cycle counting is an inventory management method that involves the regular and systematic …

Asset liability management in banks holds an essential role in the banking sector. It’s a dynamic process, like constantly turning the finances. It’s about balance and adjustment, about ensuring that assets and liabilities don’t clash but rather complement each other. This delicate balancing act is crucial to a bank’s financial …

Companies expect employees to be productive during their work hours. Essentially, it means maximizing the output for lower input. In this case, products or services are the outputs, while labor work hours are the input. Companies can use labor productivity as a financial metric to gauge their operations. What is …

When it comes to financial institutions they often use many different methods to assess their finances. One such method is known as the CAMELS rating system. CAMELS stands for Capital Adequacy, Asset Quality, Management Capability, Earnings, Liquidity, and Sensitivity to Market Risk. It not only helps in decision-making but also …

Ensuring a product meets specific criteria is one of the most critical challenges that companies face. However, they can use various techniques to eliminate or reduce any variations in operations. One of these includes process centering. What is Process Centering? Process centering is a fundamental concept in statistical process control …

In the realm of business structures, a General Partnership (GP) stands as a fundamental model of collaboration where individuals come together to pursue shared entrepreneurial endeavors. This blog post aims to unravel the essence of a General Partnership, exploring its definition, examples, advantages, disadvantages, and the landscape of other partnership …

The Keynesian Multiplier is a concept in economics that takes its name from the economist John Maynard Keynes. It is a theory that explains how changes in government spending can have a larger impact on economic output. The main reason behind the Keynesian Multiplier is the idea of aggregate demand. …

Companies measure various financial metrics to determine performance. However, these metrics do not gauge every aspect of the business. Companies use other non-quantifiable methods to measure those areas. One of these includes the quality of conformance. What is Quality of Conformance? The quality of conformance, also known as conformance quality, …

Frauds are not very uncommon when it comes to transactions and dealing with money. People often try to take advantage and cheat others out of their hard-earned money through various fraudulent schemes. One such type of fraud is known as skimming fraud. Skimming fraud involves illegally obtaining credit or debit …

Indirect costs can be highly crucial to a company’s profitability. Companies must determine and quantify these costs to ensure accurate accounting. Therefore, they can use the burden rate. What is the Burden Rate? The burden rate (or overhead rate) is a percentage or predetermined rate used to quantify the indirect …