Question

Definition of Terms of each above– at a minimum will include - 4 to 5 Pages

a.     Assets

b.     Benchmarking

c.      Break-Even

d.     Chart of Accounts

e.     Deflation

f.       Depreciation

g.     Direct Cost

h.     Equity

i.       Fixed Cost

j.       Forecasting

k.      Full-Time Equivalents

l.       Indirect Cost

m.    Inflation

n.     Liabilities

o.     Net Worth

p.     Operation Expenses

q.     Present Value

r.       Semi-Variable Cost

s.      Solvency Ratios

t.       Variable Cost

include a reference in APA form

Answer 1

A.

An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit. Assets are reported on a company's balance sheet and are bought or created to increase a firm's value or benefit the firm's operations. An asset can be thought of as something that, in the future, can generate cash flow, reduce expenses, or improve sales, regardless of whether it's manufacturing equipment or a patent

B.

Benchmarking is a process of measuring the performance of a company's products, services, or processes against those of another business considered to be the best in the industry, aka “best in class.” The point of benchmarking is to identify internal opportunities for improvement.

C.

In economics and business, specifically cost accounting, the break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even". ... In the linear case the break-even point is equal to the fixed costs divided by the contribution margin per unit.

D.

A chart of accounts (COA) is an index of all the financial accounts in the general ledger of a company. In short, it is an organizational tool that provides a digestible breakdown of all the financial transactions that a company conducted during a specific accounting period, broken down into subcategories.

E.

Definition: When the overall price level decreases so that inflation rate becomes negative, it is called deflation. It is the opposite of the often-encountered inflation. Description: A reduction in money supply or credit availability is the reason for deflation in most cases.

F.

A reduction in the value of an asset over time, due in particular to wear and tear.Depreciation is an accounting method of allocating the cost of a tangible or physical asset over its useful life or life expectancy. Depreciation represents how much of an asset's value has been used up. Depreciating assets helps companies earn revenue from an asset while expensing a portion of its cost each year the asset is in use. If not taken into account, it can greatly affect profits.

G.

A direct cost is a price that can be directly tied to the production of specific goods or services. A direct cost can be traced to the cost object, which can be a service, product, or department. Direct and indirect costs are the two major types of expenses or costs that companies can incur. Direct costs are often variable costs, meaning they fluctuate with production levels such as inventory.

H.

Put simply, equity is ownership of an asset of value. ... In corporate finance, equity (more commonly referred to as shareholders' equity) refers to the amount of capital contributed by the owners. Put another way, equity is the difference between a company's total assets and total liabilities.

I.

A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold. Fixed costs are expenses that have to be paid by a company, independent of any specific business activities.

J.

Forecasting is a decision-making tool used by many businesses to help in budgeting, planning, and estimating future growth. In the simplest terms, forecasting is the attempt to predict future outcomes based on past events and management insight.

K.

Full-time equivalent (FTE), or whole time equivalent (WTE), is a unit that indicates the workload of an employed person (or student) in a way that makes workloads or class loads comparable across various contexts. FTE is often used to measure a worker's or student's involvement in a project, or to track cost reductions in an organization. An FTE of 1.0 is equivalent to a full-time worker or student, while an FTE of 0.5 signals half of a full work or school load.

L.

Indirect Cost: Definition and Example. ... In simpler terms, indirect costs are those costs not readily identified with a specific project or organizational activity but incurred for the joint benefit of both projects and other activities.

M.

Inflation is an economic term that refers to an environment of generally rising prices of goods and services within a particular economy. As general prices rise, the purchasing power of consumers decreases. ... For example, prices for many consumer goods are double that of 20 years ago.

N.

A liability is something a person or company owes, usually a sum of money. ... Recorded on the right side of the balance sheet, liabilities include loans, accounts payable, mortgages, deferred revenues, earned premiums, unearned premiums, and accrued expenses.

O.

Net Worth in Personal Finance

An individual's net worth is simply the value that is left after subtracting liabilities from assets. Examples of liabilities (debt) include mortgages, credit card balances, student loans, and car loans.

P.

An operating expense is an expense a business incurs through its normal business operations. Often abbreviated as OPEX, operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, step costs, and funds allocated for research and development. One of the typical responsibilities that management must contend with is determining how to reduce operating expenses without significantly affecting a firm's ability to compete with its competitors.

Q.

The amount of cash today that is equivalent in value to a payment, or to a stream of payments, to be received in the future. To determine the present value, each future cash flow is multiplied by a present value factor.

R.

A semi-variable cost, also known as a semi-fixed cost or a mixed cost, is a cost composed of a mixture of both fixed and variable components. Costs are fixed for a set level of production or consumption, and become variable after this production level is exceeded. If no production occurs, a fixed cost is often still incurred.

S.

The solvency ratio is a key metric used to measure an enterprise's ability to meet its debt obligations and is used often by prospective business lenders. The solvency ratio indicates whether a company's cash flow is sufficient to meet its short-and long-term liabilities.

T.

A variable cost is a corporate expense that changes in proportion to production output. Variable costs increase or decrease depending on a company's production volume; they rise as production increases and fall as production decreases. Examples of variable costs include the costs of raw materials and packaging.