This can help businesses make better decisions about their operations, identify areas where they can improve efficiency or reduce costs, and better plan for future growth. Sales has a budget, marketing has a budget, product has a budget, and so on. Those siloes make flexible budgeting nearly impossible and limit the strategic value of an […]

In business-oriented situations, understanding opportunity can also allow you to make intelligent investments, even if differences are marginal. With that in mind, this article will serve as a guide to understanding opportunity cost by explaining tax deductible expenses for photographers how it’s calculated and why it can be beneficial, as well as providing real-life examples […]

It makes sense in some industries because of the nature and movement speed of their inventory (such as the auto industry), so businesses in the U.S. can use the LIFO method if they fill out Form 970. Throughout the grand opening month of September, the store sells 80 of these shirts. All 80 of these […]

If it is worth less than carrying value on the books, the asset is considered impaired. In the case of impairment, the devaluation of an asset based on present market conditions would be a more conservative accounting practice than keeping the historical cost intact. When an asset is written off due to asset impairment, the […]

Entity A holds a 20% interest in Entity B and accounts for it using the equity method. In the year 20X0, Entity B sold an item of inventory to Entity A for $1m, which was carried at a cost of $0.7m in B’s books. During the year 20X1, Entity A sold this equity method of […]