Additional details and examples of income statements will be provided later. Companies usually issue these documents because they are required to by law or stockholders. If a company is publically traded, its income statement must conform to gaap standards. Expenses The first item reclassifies amounts reported in earlier income statements if those figures are in … Continue reading Understanding an Income Statement Definition and Examples Bench Accounting →

And that $10,000 fee is not just the money today, but the greater amount it could compound into in 10 or 20 years or more. Structured products represent a pre-packaged investment strategy based on derivatives, such as a… Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives … Continue reading Expense Ratio: Definition, Formula, Components, and Example →

The DOL indicates how sensitive your operating income is to changes in sales volume. The Degree of Operating Leverage Calculator is a valuable tool for financial analysts, investors, and business owners. It provides insights into a company’s sensitivity to changes in its operating income due to variations in sales. By understanding the DOL formula and … Continue reading Operating Leverage: What It Is, How It Works, How to Calculate →

If there is no difference between the actual hours worked and the standard hours, the outcome will be zero, and no variance exists. Hitech manufacturing company is highly labor intensive and uses standard costing system. The standard time to manufacture a product at Hitech is 2.5 direct labor hours. Ask a Financial Professional Any Question … Continue reading Direct Labor Rate Variance Formula, Example →

The cash discount on the other hand is between the seller or retailer and the buyer. Discounts are great marketing tools in the retail world because they increase sales and attract new customers. A discount can also put a store above others for customers to choose because of the discount offered. However, rebates can also … Continue reading Rebates vs Discounts: Whats the Difference? Wiser Retail Strategies →