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
Manage Your Business
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
Inventory: Type, Effect on GDP, Its Accounting Analysis
What's it: An inventory is a list of all the items that a company maintains as production inputs and items to fulfill sales. They include raw materials, work in progress, and finished goods.They are essential for two reasons. First, by converting
Marketing Objectives: Specific Targets Achieved Through Marketing Activities + Examples
What's it: A marketing objective is something a company wants to achieve through its marketing activities. Therefore, they are a special target for the marketing department. They must be specific, measurable, achievable, relevant, and
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,
Business Size: How Business Scale Shapes Success (Importances, Measurement, Classification)
What's it? Business size refers to the size of a company's operations. It can be measured by several indicators, including assets, revenue, production, market capitalization, number of employees, and capital invested.Business size matters. It can
Triple Bottom Line (3Ps) Explained: Profit, People, Planet (Sustainability) – Importance, Examples, Pros, Cons
What's it? The triple bottom line is a framework for measuring company performance, covering three aspects: profit, people, and planet. Profit measures the economic dimension, while people and the planet measure performance in social and
Specialization: Definition, Importance, How it Works, Pros, Cons
What's it: Specialization means focusing on a specific aspect of something bigger. It can be related to a product, task, job, or skill. For example, when a company specializes in a particular product, it focuses on a few goods rather than
Manager: Definition, Interests, Types, Functions
Who's it: Managers are employees whose functions are to plan, organize, control, and make decisions to achieve company goals. They may head a project, work unit, branch office, or company department/division.In carrying out their functions,
SMART Business Objectives: Your Roadmap to Business Success [Importance, Examples, Criteria]
What's it:Â A business objective is a specific, measurable, realistic, relevant, and time-bound business target. In other words, they represent what results we want, for example, in one year, two years, three years, and so on. These results should be
Business Structure: Definition and Three Types
Business structure refers to the legal form of a company as in its charter. When you start a business, you have to decide what kind of business entity you will set up.Three main types of structures are sole proprietorships, partnerships, and
Decoding Corporate Culture: A Crucial Element for Business Success
Corporate culture, the set of values, beliefs, and behaviors that define a company, acts as the invisible backbone of any organization. It shapes how employees interact, make decisions, and approach their work. A strong corporate culture fosters a