Understanding Net Present Value
Loading the player...
Learn how this value is used to determine the worth of a project.
Whether a company chooses FIFO or LIFO has important implications for the bottom line and for tax liability.
Investopedia explains: Reconciliation is an accounting process in which two sets of records are compared to make sure that the figures are in agreement. These sets of records are usually account balances.
Selling, general and administrative expenses (SG&A) are a company's total direct and indirect costs from selling its product or service as well as its total general and administrative expenses. The company reports its SG&A on the income statement.
Contribution margin is a cost accounting concept that allows a company to determine the profitability of individual products.
Inventory turnover is a ratio that shows how quickly a company uses up its supply of goods over a given time frame. Inventory turnover may be calculated as the market value of sales divided by ending inventory, or as cost of goods sold (COGS) divided by average inventory.
"Mark-to-market" accounting is a way of valuing assets based on how much they could sell for under current market conditions. In recent decades, it has become the standard way to record financial assets on a company's balance sheet.
comments powered by Disqus