Net Income is a key line item, not only in the income statement, but in all three core financial statements. While it is arrived at through| Corporate Finance Institute
The balance sheet is one of the three fundamental financial statements. The financial statements are key to both financial modeling and accounting.| Corporate Finance Institute
Spoilage literally means wastage or scrap that occurs during the manufacturing process or is badly damaged material that is used for processing a product| Corporate Finance Institute
Product costs are costs that are incurred to create a product that is intended for sale to customers. Product costs include direct material| Corporate Finance Institute
Inventory is a current asset account consisting of all raw materials, work-in-progress, and finished goods that a company has accumulated.| Corporate Finance Institute
Target costing is not just a method of costing, but rather a management technique wherein prices are determined by market conditions, taking| Corporate Finance Institute
Cost is something that can be classified in several ways depending on its nature. One of the most popular methods is classification according| Corporate Finance Institute
ROA Formula. Return on Assets (ROA) is a type of return on investment (ROI) metric that measures the profitability of a business in relation to its total assets.| Corporate Finance Institute
AI is a broad branch of computer science that is focused on a machine's capability to produce rational behavior from external inputs.| Corporate Finance Institute
Absorption costing is a costing system that is used in valuing inventory. It not only includes the cost of materials and labor, but also both| Corporate Finance Institute
Job order costing is used to allocate costs based on a specific job order. This guide provides the job order costing formula and how to calculate it.| Corporate Finance Institute
Activity-based costing is a more specific way of allocating overhead costs based on “activities” that actually contribute to overhead costs.| Corporate Finance Institute
We discuss the different methods of projecting income statement line items. Projecting income statement line items begins with sales revenue, then cost| Corporate Finance Institute
Sales revenue is income received from sales of goods or services. In accounting, the terms “sales” and “revenue” are often used interchangeably.| Corporate Finance Institute
Gross profit is the direct profit left over after deducting the cost of goods sold, or cost of sales, from sales revenue. It's used to calculate the gross profit margin.| Corporate Finance Institute
Earnings before tax, or pre-tax income, is the last subtotal found in the income statement before the net income line item. EBT is found| Corporate Finance Institute
The three financial statements are the income statement, the balance sheet, and the statement of cash flows. See them explained in detail.| Corporate Finance Institute
Gross means the total or whole amount of something, whereas net means what remains from the whole after certain deductions are made. This guide will compare gross vs net| Corporate Finance Institute
Cost of Goods Manufactured (COGM) is a term used in managerial accounting that refers to a schedule or statement that shows the total| Corporate Finance Institute
Sensitivity Analysis is a tool used in financial modeling to analyze how the different values for a set of independent variables affect a dependent variable| Corporate Finance Institute
The Income Statement is one of a company's core financial statements that shows its profit and loss over a period of time.| Corporate Finance Institute
The first mover advantage refers to an advantage gained by a company that first introduces a product or service to the market. The first mover advantage| Corporate Finance Institute
EBITDA or Earnings Before Interest, Tax, Depreciation, Amortization is a company's profits before any of these net deductions are made.| Corporate Finance Institute
The revenue recognition principle dictates the process and timing by which revenue is recorded and recognized as an item in a company's| Corporate Finance Institute