“Explicit costs” are costs that can be recorded and measured. The importance of explicit cost as a category is related to the importance of implicit cost, its contrary. Implicit cost…
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Investment is the use of capital in long-term projects that are expected to result in monetary profit. “Investment” derives from the Latin word investio “to clothe”. The economic sense derives…
Hyperinflation is when the prices of all goods and services rise uncontrollably over a defined period. Hyperinflation is extremely rapid inflation. Inflation measures the pace of rising prices for goods…
For businesses, capital is the money it has available for paying for their day-to-day operations as well as funding future growth. Capital is a very broad term generally conferring benefit…
The definition of a write-off is a business expense deducted for tax purposes. Expenses include anything purchased in the course of running a business for profit. The cost of these…
The government imposes sales tax on the sale of goods and services, and retailers collect it at the point of sale and pass it on to the government. Businesses are…
The definition of a credit score is a number that ranges from 300 to 850. The importance of a credit score is that it rates a consumer’s creditworthiness. How credit…
A cash book is a subsidiary book that includes both cash and bank transactions, and it is a journal and a ledger. Some companies utilize cash books instead of cash…
An investment is an asset or item that someone gains to generate income or appreciation. Appreciation is the increase in an asset’s value over time. When someone purchases goods as…
The definition of inventory management and tips for effective inventory management will be discussed in the following lines. Inventory management is the systematic organization of product stocks. The systematic organization…
