Introduction The Contribution Margin is a significant financial metric that is sometimes neglected by managers. While profit margin is one we usually hold very important, it gives information only on the amount with which revenues exceed costs. On the other hand, Contribution Margin provides us with a way to see Read more…
Today we take a look at the Absorption Costing Method and how it is used to allocate cost to produced goods. Do not forget to download the Excel working file at the end of the article. What is Absorption Costing? Absorption Costing is a management accounting method for accumulating all Read more…
It was 1912, and Donaldson Brown was working as an explosives salesman for the DuPont Corporation. About that time, the company treasurer John Raskob brought him into the financial activities of the company and encouraged him to use statistics to evaluate the business performance of the various activities under the Read more…
In today’s article, we will look at what Financial Analysis stands for, how to perform it and, most importantly, why it is essential for businesses. What is Financial Analysis? If you google the definition, what you get is something along the lines of Financial analysis is the assessment of the Read more…
