Indifference Point and how to calculate it ?
The Cost Indifference Point
A cost indifference point is the point at which total cost (fixed and variable) of two alternatives under consideration is the...
Factors Determining Working Capital Needs
FACTORS AFFECTING WORKING CAPITAL
1. Nature of business2. Production policy3. Credit policy4. Inventory policy5. Abnormal factor6. Market conditions7. Conditions of supply8. Business cycle9. Taxation policy10....
Profitability Ratios
Profitability Ratios
Profitability ratios are a class of financial metrics that are used to assess a business’s ability to generate earnings relative to its associated...
Average Rate of Return
Average Rate of Return
The rate of return on an investment that is calculated by taking the total cash inflow over the life of the...
Objectives of Financial Management
Objectives of Financial Management
The financial management is generally concerned with procurement, allocation and control of financial resources of a concern. The objectives can be-
To...
FINANCIAL MANAGEMENT (MEANING & SCOPE)
FINANCIAL MANAGEMENT MEANING
Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It...
Capitalisation
Capitalisation
Capitalization, in accounting, is when the costs to acquire an asset are expensed over the life of that asset rather than in the period...
Factors Determining Capital Structure
Factors Determining Capital Structure
Trading on Equity- The word “equity” denotes the ownership of the company. Trading on equity means taking advantage of equity share capital...
Techniques of Financial Analysis
Techniques of Financial Analysis
Financial Analysis is defined as being the process of identifying financial strength and weakness of a business by establishing relationship between the...
CAPITAL EXPENDITURE
Capital expenditure, or CapEx, are funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment....
