All posts in Finance

Contribution margin can be calculated by the subtracting the price of a product with the variable costs of all the associates. It eventually leads to an incremental profit which can be earned for even sold unit. The contribution margin is generated by a business organization…

Activity based costing can be defined as a system which the businesses uses to track the cost of a system which is primarily focused on the activities which are used for producing any product. In activity based costing, the costs are first traced to the…

The concept of time value of money is a concept in the financial management which explains that the monetary received now has more value the same amount which will be received in the future.  The potential of the money invested and the interest earned when…

PPF also is known as Public Provident Fund; It was introduced in 1968 in India. Well, its an India backed long term saving schemes that were launched by the government that offers the benefits to the investor on their tax under the income tax act,…

It’s one of the profitable ratios, which is mostly used to gauge the degree to the business, or the company generates the money. Profit margin also shows the percentage in sales, which are now the profit.  In other word, the Profit margin is a percentage…

Current Ratio is one of the most heard terms in Accounting. However, there are more meaning and use of current ration than that. Well, Current Ratio is basically a liquidity ratio which helps in measuring the ability of the company to pay obligation that is short…