Cost refers to the expenditure or sacrifice of resources, usually measured in monetary terms, incurred to acquire goods, services, or assets. It represents the amount of money or resources companies must allocate to obtain something of value. Costs can take various forms and classifications based on their characteristics. Regardless of …

Total shareholder return (TSR) is an important concept that takes into account stakeholders. It’s a measure of the overall return on investment made by an investor in a particular company over a given period of time. Being an investor it’s always a good idea to look at the company’s TSR …

B2B or Business to Business is a very common term used in the business world. B2B is the term used to describe transactions between two businesses. Unlike B2C or Business to Consumer where it is the business selling their products or services to an individual customer, B2B involves the exchange …

Certified payroll is crucial for contractors or subcontractors working on government-funded projects. Employee compensation records are the exact details of how much each worker is paid for their work on a project. The purpose of certified payroll is to ensure workers are paid fairly and in compliance with wage laws. …

Manufacturing and construction companies typically use the exponential depreciation formula when calculating the depreciation of their fixed assets. For companies that make long-term investments in large equipment and machinery, it’s important to use a formula that considers how the value of the asset decreases with time. This way they can …

The cost of goods sold (COGS) is a critical financial metric used by businesses to calculate the direct costs associated with producing or acquiring the goods or services sold during a specific accounting period. However, the COGS figure can be further adjusted to account for additional expenses or factors that …

The cost of goods sold (COGS) refers to the direct costs incurred by a company in producing or acquiring the goods it sells during a specific period. It includes all the costs directly associated with goods, such as raw materials, direct labour, and manufacturing overhead. Companies may divide this amount …

Dual pricing, also known as price discrimination, is a pricing strategy that has been used by businesses for many years. It involves charging different prices for the same product or service to different customers. This strategy is often used in situations where businesses can identify different groups of customers with …

What is Free Cash Flow? Free cash flow (FCF) is a financial metric representing the amount of cash a company has available after deducting its operating expenses, taxes, and investments in fixed assets. It measures the cash generated by the company’s operations for various purposes, such as investing in new …

Companies may use several classifications for costs. Two of the primary ones include cost center and cost unit. Therefore, it is crucial to discuss these in detail. What is a Cost Center? A cost center is a segment that incurs costs but does not directly generate revenue. It is a …