What's it: Activity-based costing (ABC) is a costing approach in which the company will first identify the activities it undertakes and then determine the resources consumed by each activity. Under this method, the product's cost is based on the
Financial Management
Top-Down Budgeting: Meaning, Stages, Advantages, and Disadvantages
What's it: Top-down budgeting is a budgeting approach in which top executives set a budget and then pass it on to managers for implementation. Budgeting will be following the targets and objectives to be achieved by management.Company
Weighted Average Cost of Capital (WACC): Formula, How To Calculate It
The weighted average cost of capital (WACC) is the minimum rate of return, on average, the company provides so that suppliers of funds are willing to lend money to the company. Capital consists of equity and debt, each of which has a cost. And,
Sunk Cost: Examples, Fallacy
A sunk cost is a cost that the business has already incurred and cannot be recovered. It contrasts with prospective costs, which are costs that companies will face in the future, such as the cost of purchasing inventory or the cost of raw