Insights on business strategy and culture, right to your inbox.Part of the business.com network. Supercharge your skills with Premium Templates To determine if a cost should be classified as either a direct or indirect cost, the question to ask is whether the cost is directly needed to create and develop the product/service. When an analyst … Continue reading Direct Costs vs Indirect Costs: What’s the Difference? →

Oftentimes, cash flow is conveyed as a net of the sum total of both positive and negative cash flows during a period, as is done for the calculator. The study of cash flow provides a general indication of solvency; generally, having adequate cash reserves is a positive sign of financial health for an individual or … Continue reading How to calculate the payback period →

In the accounting industry, mark to market shows the current value of an asset, this is important in the compilation of financial statements for a fiscal year. When financial statements are compiled, they must reflect the current market value of assets. When this is contained and reflected in financial statements, financial institutions can then adjust … Continue reading Recent changes to fair-value accounting under US GAAP and IFRS →