Accounting

Concept of Profitability Index (PI) The profitability index is known as the benefit-cost ratio. It is a useful tool for ranking projects because it allows…

The Profitability Index (PI) measures the ratio between the present value of future cash flows and the initial investment. It is a tool that investors…

Judgment-debtor A person who has been ordered by the court to repay his debt is known as judgment-debtor. S/He is one who is obligated to…

A journal literally means a daily record of news, events, activities, etc. It is an essential part of objective record-keeping and allows for concise review…

The profitability index (PI) refers to the ratio of discounted benefits over the discounted costs. It is a capital budgeting tool that helps to decide…

The internal rate of return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments. Calculating IRR cannot be calculated…

The internal rate of return, or IRR, is the interest rate where the net present value of all cash flows from a project or an…

The internal rate of return (IRR) is used to measure and compare the profitability of various business projects and investments. One of the advantages of…

Concept of Internal Rate of Return (IRR) Internal Rate of Return (IRR) is the discount rate that makes the net present value of all cash…

Concept of Activity Based Costing (ABC) The activity-based costing (ABC) system is a method of accounting you can use to find the total cost of…

Activity-based costing is a costing method that has been developed to deal with the perceived weaknesses of traditional absorption costing. It is a managerial accounting…

Activity-based costing provides a more accurate method of product/service costing, leading to more accurate pricing decisions. This is important for businesses offering customized services or…