Accounting

Pretax Operating Income (PTOI) is the operating revenue before taxes for a company. This is an accounting term relating to the disparity between the net…

Net operating profit after tax (NOPAT) is a financial metric that indicates how well a business worked, net of taxes, through its core activities. By…

Property, Plant, and Equipment (PP&E) is a non-current, measurable capital asset shown on a company’s balance sheet and used to produce sales and profits; these…

The high-low method of cost accounting is a way of trying to distinguish fixed and variable costs, provided a limited amount of data. Although the…

Capital Budgeting Process Capital budgeting is a company’s formal process used for evaluating potential expenditures or investments that are significant in amount. The extent to…

Mutually Exclusive Project In capital budgeting, mutually-exclusive projects refer to a set of projects out of which only one project can be selected for investment.…

Cost-volume-profit (CVP) is a cost accounting approach that looks at the effect on operating profit that different rates of cost and volume have. A cost…

Working Capital is the capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.…

Tax Adjustment Tax is a change to the amount of tax owed by a company or individual. Tax adjustments are transactions that are entered to…

Salvage Value Salvage value is the estimated resale value of an asset at the end of its useful life. It means the value which is…

Evaluation Techniques of Capital Budgeting Capital budgeting is the process a business undertakes to evaluate potential major projects or investments. It is making long-run planning…

The payback period (PBP) is the amount of time that is expected before an investment will be returned in the form of income. Pay back…