Finance Basics & Concepts

Introduction Financial structure defines the composition of a company’s capital, representing the mix of different funding sources used to operate and expand its business.  Imagine you are embarking...

Introduction To ensure profits, the selling price must always be more than what it costs to manufacture or make a product. The cost units of a product may...

Introduction Keeping fixed costs under control is one of the top priorities for CFOs, especially for reaching the break-even point. Managing fixed costs also helps them budget, forecast,...

Introduction Accrued expenses stem from a promise.  Let’s say you promised to pay your vendor 1000 dollars for their service at the end of their contract. The vendor...

Introduction The debt-service coverage ratio (DSCR) is a crucial financial metric focusing on an organization's ability to manage debt obligations. It is not just one of the many...

Introduction A cash budget is a financial planning tool that forecasts a business's cash inflows and outflows over a specific period. By outlining expected revenues and expenditures, the...

Introduction Accounting is a multifaceted discipline. It caters to the diverse informational needs of stakeholders within and outside an organization. The branches of accounting have emerged organically to...

Introduction Inventory is money sitting around in another form - Rhonda Adams, USA Today. The First-In, First-Out (FIFO)  is a widely used method for inventory management at the...

Introduction Unit cost is a fundamental concept in business and economics. It influences many decisions related to production, pricing, and profitability analysis. It is more than just a...

Introduction In the dynamic landscape of modern business, corporate finance is the backbone of strategic decision-making.  As enterprises navigate the intricate dance of growth and sustainability, Warren Buffett's...