Just In Time Inventory

Just In Time Inventory or JIT is an inventory management system in which inventory is updated or products are produced or manufactured only when the demand requires that. With the help of Just in time inventory management concept the controller, … Continue reading

Total Quality Management

Total quality management can be defined as a management practices or set of efforts that are applied to the organization in order to improve the organization and increase its efficiency. The aim of the total quality management is to improve … Continue reading

What is Business Process Re engineering?

Business Process Reengineering is a process of making an organization more efficient and effective by redesigning the workflows in order to optimize end to end processes and to remove process that don’t add any value to the system. There are … Continue reading

Inventory Accuracy

In order to maintain systems that meet the customer demand, customer fulfillment and production a company needs to have hundred percent accurate inventory records. In order to have an idea of accurate records of the inventory we need to have … Continue reading

Cash Coverage Ratio

Cash coverage ratio can be defined as the amount of cash available in hand in order to pay the interest expense of the business. This ratio shows the amount of cash in hand that will be paid for the interest … Continue reading

How to prepare a Cash Flow Statement

The statement of cash flow is a financial statement that represents the flow of cash into and out of the company. It also shows the usage of the cash and purposes for which the cash is used. There are three … Continue reading

Debt Service Coverage Ratio

The debt service coverage ratio is a ratio that is related to the revenue generating property. This is the measure of ability of the property to generate so many revenues that will generate enough cash to pay all the mortgage … Continue reading

Cost of Credit

The cost of credit is a financial calculation that is done to find out the cost of the discount that a business is going to offer on an early payment. The cost of credit is used to find out by … Continue reading

Liquidity Index

The liquidity index is a financial indicator that is used to indicate the number of days required by a company to convert its trade receivables and inventory into cash. The liquidity index is the measure of the ability of a … Continue reading

Basic Accounting Principle

There are a number of basic accounting principle that contains norms and rules according to which accounting is conducted within a business. A few of these principles can be explained as under:- Accrual Principle This principle states that the accounting … Continue reading

Writing Off a Bad Debt

Whenever a customer invoice is tagged as uncollectible this means that the amount receivable is not going to be received and is converted into a bad debt. If an invoice is declared as bad debt invoice it is very necessary … Continue reading

Time Value of Money

The concept of time value of money states that the cash received today at this point of time is more valuable as compared to the cash received in future at some other point of time.  The major reason to make … Continue reading

Variable Annuity

Variable Annuity is a kind of retirement annuity as it offers death benefits and other integrated features associated with death benefits. Most of the insurance companies offer variable annuities under a condition where an investor planning for the retirement purchases … Continue reading

Annuity Due

Annuity Due can be explained as a series of payments that posses certain characteristics as compared to the other form of the payments. The first characteristic of this kind of payment is that all payments are of same amount that … Continue reading

The Sales Tax Calculation Process

Sales tax is a kind of tax that is to be paid by the consumer and the seller receives it on the behalf of Government and has to pay all the accumulated sales tax to the government account. Whenever a … Continue reading

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