Mission Statement

The mission statement sets out what the business plans to do in order to achieve its vision. The purpose of the statement is to

Mission Statement July 14th, 2016Team
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Vision Statement

The vision statement sets out a long term inspirational aim of a business. The statement is all about the future, and its purpose is

Vision Statement June 2nd, 2016Team
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Definition of ‘Overcapitalization’ Overcapitalization occurs when a business has too much funding for its current level of profitability. The effects of over-capitalization is that

Overcapitalization March 1st, 2016Team
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Accounting Sensitivity Analysis

Definition Accounting sensitivity analysis is the process of changing an input to a financial projection in order to assess the sensitivity of the financial

Accounting Sensitivity Analysis June 20th, 2017Team
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Scenario Analysis

Definition Financial projections are based on a set of assumptions and inputs. In order to see what happens to the business under different circumstances

Scenario Analysis June 20th, 2017Team
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Net Worth

Definition Net worth is a term which can refer to a business or an individual and is calculated by taking the difference between the

Net Worth March 13th, 2018Team
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Year End

Definition A business sets an accounting period for which it prepares financial statements. For management account purposes it might prepare them each month, for

Year End February 3rd, 2016Team
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Zero Based Budgeting

Definition Zero based budgeting refers to a method of budgeting which assumes that a business will not remain the same from one accounting period

Zero Based Budgeting January 5th, 2016Team
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Hurdle Rate

Definition The hurdle rate is the minimum acceptable rate of return (MARR) a business requires on a capital project. Capital projects such as investment

Hurdle Rate December 11th, 2017Team
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Definition Kaizen literally means ‘change’ (kai) ‘to be good’ (zen), and refers to a philosophy based around the concept of continuous incremental improvement. In

Kaizen December 16th, 2015Team
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Economies of Scale

Definition Economies of scale refers to the fact that the average unit cost of a product can be reduced by increasing the rate of

Economies of Scale December 10th, 2015Team
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