Tutorials

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What Can Distort the Picture? April 13, 2006 Your financial statements and ratio analysis may not always give a true picture of the condition of your business and how you stack up against other ...

Inflation April 13, 2006 Inflation has its biggest impact on the reported profits of businesses with sizable inventories. Consider the following example:

Accounting Procedures April 13, 2006 The second major cause of distortions in the picture presented by financial statements and ratio analysis of the ...

Cost/Volume/Profit Analysis April 13, 2006 To have a strong and successful business, you need to have a clear understanding of the financial impact that your most basic business decisions may have.

Fixed and Variable Costs April 13, 2006 Before you can use cost/volume/profit analysis to help you evaluate your business's operations, you need to get a handle on the fixed costs of your business, as compared to your variable costs.

Contribution Margins April 13, 2006 One of the important, yet relatively simple, tools afforded by cost/volume/profit analysis is known as contribution margin analysis. Your company's contribution margin is simply the percentage of ...

Breakeven Analysis April 13, 2006 A second tool for management decisionmaking that has grown out of cost/volume/profit analysis is breakeven analysis.

Operating Leverage April 13, 2006 Once you've determined your breakeven point, you can use it to examine the effects of increasing or decreasing the role of fixed costs in your operating ...

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