When you subtract operating expenses from the gross profit, that number is the operating income. It is usually a much lower number than gross profit becau...

A Four-Step Process. Mapping a profit pool involves four steps: defining the pool’s boundaries, estimating the pool’s overall size, estimating the size of...

What to include in a work order letter Company name. Start with your company name, typically in one of the upper corners. Company address. Below the compa...

Operating expenses include selling, general and administrative expense (SG&A), depreciation, and amortization, and other operating expenses. Operating...

The costs which should be used for decision making are often referred to as “relevant costs”. Any costs which would be incurred whether or not the decisio...

Goodwill Goodwill is an intangible asset that is associated with the purchase of one company by another. Specifically, goodwill is the portion of the purc...

Accounts receivable are an asset, not a liability. In short, liabilities are something that you owe somebody else, while assets are things that you own. E...

noun. a book in which personal or commercial accounts are recorded; ledger. What is an account book used for? All business establishments and taxpayers ar...

66A Factors such as changing design requirements, late design release, lack of production planning, and unstable funding can result in increased costs and...

Statutory Financial Statements means financial statements required to be filed by the Operating Subsidiaries with insurance regulatory authorities under a...