Fixed costs refer to expenses that a company must pay, regardless of any specific activities.
These costs are fixed for a certain period of time and do not change depending on the level of production.
Fixed costs can be direct or indirect and can affect profitability at different points in the income statement.
Companies have interest payments as a fixed cost, which is a factor in net income.
Cost structure management is an important part of business analysis, which considers the impact of fixed and variable costs on the business as a whole.
Accrual accounting is a method of accounting in which revenue or expenses are recorded at the time of the transaction, and not at the time the payment is received or made.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.
Adjusting journal entries are used to record transactions that have occurred but have not yet been properly accounted for in accordance with the accrual basis.
The annual report is a corporate document distributed to shareholders, which sets out the financial position and activities of the company for the previous year.
An asset is a resource with economic value that is owned or managed by an individual, corporation or country with the expectation that it will provide benefits in the future.