The Activity-Based Costing Model

Introduction to the Activity-Based Costing (ABC) Model The Activity-Based Costing method identifies the activities in the company and assigns their costs to production based on actual consumption. One of the most recognized definitions is of the Chartered Institute of Management Accounting (CIMA) and defines the ABC method as an ‘approach Read more…

Free Cash Flow (FCF)

This week we take a look at Free Cash Flow and how we can use it within a financial analysis setting. What is Free Cash Flow? The Free Cash Flow (FCF) represents the cash generated, after cash outflows to support the operating activities of the business and to maintain its Read more…

DuPont Model for Business Analysis

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…