Author: Anfisa Dmitrieva

GDP (gross domestic product) is the most popular measure of national output. The main challenge in using this method is how to avoid counting the same product more than once. Output is the result of an economic process that has used inputs to produce…

It is justifiable to exclude ‘outlier’ data points from statistical analysis for significance level of 0.005 or less according R.A. However, choosing a value of significance level for outlier detection is one of the problems. The second problem is th…

Technically, a negative liability is a company asset, and so should be classified as a prepaid expense. A negative liability typically appears on the balance sheet when a company pays out more than the amount required by a liability. Unearned revenue…

Current assets consist of cash and cash equivalents, which is generally the first line item on the asset side of the balance sheet when a balance sheet is prepared based on liquidity. Cash equivalents are generally commercial papers that a company in…

Cash equivalents are generally commercial papers that a company invest which is as liquid as cash. Other current assets are accounts receivables which the amount of money the company owes from the debtors to whom they have sold their goods on credit….

Activity-based costing (ABC) is a costing method that assigns overhead and indirect costs to related products and services. This accounting method of costing recognizes the relationship between costs, overhead activities, and manufactured products, a…

New hardware runs faster, uses less energy and provides more cores every year, likewise SaaS platforms often employ rapid upgrade cycles with a constant influx of improvements. In that context it doesn’t make sense to sink money into technology that …

If you pay someone a mix of fixed salary plus commission, then they represent both fixed and variable costs. The cost of inventory is the “carrying cost” of holding and storing inventory over a certain period of time. It’s calculated to determine the…

Even clipping coupons versus going to the supermarket empty-handed is an example of an opportunity cost unless the time used to clip coupons is better spent working in a more profitable venture than the savings promised by the coupons. Opportunity co…

It guarantees the lessee, also known as the tenant, use of an asset and guarantees the lessor, the property owner or landlord, regular payments for a specified period in exchange. Both the lessee and the lessor face consequences if they fail to uphol…