What Is Zero Based Budgeting ZBB?

 Posted on Posted on: 08.02.2024Categories Business Accounting Blog

In addition, ZBB promotes innovation and minimizes the waste and scope creep that can accompany baseline budgeting, where every dollar is often spent to protect the following year’s budget against cuts and encourage an increase—even when it’s not necessary. As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, … Continue reading “What Is Zero Based Budgeting ZBB?”

Year-Over-Year YOY: What It Means, How It’s Used in Finance

 Posted on Posted on: 08.02.2024Categories Business Accounting Blog

That’s because it offers insights on a longer time period than other time-based metrics such as MTD. This example comes from a financial modeling exercise where an analyst is comparing the number of units sold in Q to the number of units sold in Q3 2017. YOY also differs from the term sequential, which measures … Continue reading “Year-Over-Year YOY: What It Means, How It’s Used in Finance”

Understanding Bond Yield and Return

 Posted on Posted on: 08.02.2024Categories Business Accounting Blog

As a result, the bond’s yield to maturity will fluctuate, while the coupon rate for a previously existing bond will remain the same. In comparison, the current yield on a bond is the annual coupon income divided by the current price of the bond security. The Yield to Maturity (YTM) represents the expected annual rate of … Continue reading “Understanding Bond Yield and Return”

Year to Date YTD Formula + Calculator

 Posted on Posted on: 08.02.2024Categories Business Accounting Blog

There is also year-to-date payroll, which shows you the amount of money spent on payroll from the beginning of the year to the current payroll date. Year-to-date is a time period starting at the beginning of a year to the present. Consider a stock whose share price at the beginning of the calendar year was … Continue reading “Year to Date YTD Formula + Calculator”

What is the Working Capital Formula & How to Calculate It?

 Posted on Posted on: 08.02.2024Categories Business Accounting Blog

In contrast, capital-intensive companies that manufacture heavy equipment and machinery usually can’t raise cash quickly, as they sell their products on a long-term payment basis. If they can’t sell fast enough, cash won’t be available immediately during tough financial times, so having adequate working capital is essential. Guided by the above criteria, management will use … Continue reading “What is the Working Capital Formula & How to Calculate It?”

Work in Progress WIP Inventory Formula + Calculator

 Posted on Posted on: 07.02.2024Categories Business Accounting Blog

It helps the firm to identify and adjust to underbilling and overbilling situations, thereby securing cash flow and preserving client relationships. For accounting purposes, process costing differs from job costing, which is a method used when each customer’s job is different. Cost of goods sold (COGS) makes up a substantial portion of a construction company’s … Continue reading “Work in Progress WIP Inventory Formula + Calculator”

Vertical Analysis: Definition, How It Works, and Example

 Posted on Posted on: 07.02.2024Categories Business Accounting Blog

Performing a vertical analysis of a company’s cash flow statement represents every cash outflow or inflow relative to its total cash inflows. Vertical Analysis is a form of financial analysis where the line items on a company’s income statement or balance sheet is expressed as a percentage of a base figure. A vertical analysis is also … Continue reading “Vertical Analysis: Definition, How It Works, and Example”

How to Calculate Variance Calculator, Analysis & Examples

 Posted on Posted on: 07.02.2024Categories Business Accounting Blog

Variance is essentially the degree of spread in a data set about the mean value of that data. It shows the amount of variation that exists among the data points. Visually, the larger the variance, the “fatter” a probability distribution will be. In finance, if something like an investment has a greater variance, it may … Continue reading “How to Calculate Variance Calculator, Analysis & Examples”

What is Utilities Expense?

 Posted on Posted on: 07.02.2024Categories Business Accounting Blog

The classification and presentation of these expenses can be done as selling expenses, administrative expenses, etc. For businesses, utilities expense can vary widely depending on the nature and scale of operations. In most cases, utilities expense is considered a variable cost because it changes in proportion to the level of production or business activity. In … Continue reading “What is Utilities Expense?”

Unearned Revenue Definition, Accounting Treatment, Example

 Posted on Posted on: 07.02.2024Categories Business Accounting Blog

The main differences are the accounts they go to and how to report them in the general journal. Revenue must also be credited to the general journals; then, it is put in the income statement. When expenses are subtracted, interest must be paid on the remaining value. Many different types of revenue are earned, but … Continue reading “Unearned Revenue Definition, Accounting Treatment, Example”