Accounting

Activity-based budgeting (ABB) is a system for tracking, researching, and analyzing actions that result in expenditures for a business. It is based on activities-based costing,…

An activity cost driver, also known as a causal factor, is a set of behaviors that influence a company’s variable costs to rise or fall.…

A cost driver is the source of a cost that has an impact on the overall cost. The most common application of the principle is…

The cost of equity is the expected return on an investment in a business by an investor. The cost of equity is used by a…

Purchase price allocation (PPA) is a goodwill accounting technique in which one firm (the acquirer) allocates the purchase price of a second firm (the target)…

The term “paper wealth” refers to a person’s or a company’s worth as measured by assets listed on paper. It refers to wealth as measured…

The term vested benefit obligation (VBO) is actually used to refer to a retirement plan’s actuarial present value. It is a calculation of a company’s…

An asset retirement obligation (ARO) is a legitimate commitment related with the retirement of an unmistakable seemingly perpetual resource where the circumstance or technique for…

A profit-sharing plan (PSP) is a type of pension plan that allows employees to share in a company’s income. An employee earns a share of…

Employers sponsor a deferred profit-sharing plan (DPSP) that combines a pension with a retirement plan to help employees prepare for retirement. It is a business-supported…

When a business collects payment for products and/or services that have not yet been shipped or completed, it generates deferred revenue, also known as unearned…

A deferred tax liability (DTL) or deferred tax liabilities is a tax that has been assessed or is due for the current period but has not…