What is Average Fixed Cost? Definition: Average fixed costs are a production cost that remains the same regardless of the amount of goods and services produced. Such costs do not vary with changes in output. Businesses and companies incur a wide array of costs in the production of goods and services. The incurred expenses vary
What is a Chief Financial Officer (CFO)? Definition: A chief financial officer (CFO) handles all related financial matters of an organization. It includes financial planning, record keeping, reporting, and also advising the organization on any impending financial risks. It is a ubiquitous term and is used interchangeably with chief financial and operating officer (CFOO). What
What is a Cash Receipt? Definition: A cash receipt is a printed or written statement of an amount received from a customer during a cash sale transaction. At one time or another, you must have received a receipt at a transaction or payment point. The receipt is commonly referred to as a cash receipt. The
What is a Cancelled Check? Definition: A cancelled check is the check that is returned to the payer as a receipt for the funds that were disbursed to the payee’s bank account. It refers to the cashing of a check by a payee after receiving a payment from a payer. It is a canceled, prevented
What is Contractionary Monetary Policy? Definition: A contractionary monetary policy is a governmental economic effort to fight inflation by decreasing the money supply. When an economy is under an attack of inflation, the central bank must make the appropriate move contain it. In such a scenario, it applies the Contractionary Monetary Policy. The presence of
What is Change in Demand? Definition: Change in demand is the shift in the demand curve, either up or down, brought about by a change in a determinant of demand, with price remaining constant. The shift in demand is more large-scale and has far-reaching implications compared to change in demand quantity. Understanding Change in Demand
What is Budget Reporting? Definition: Budget reporting is a process that entails comparing financial achievements over a given period with targeted or estimated figures. By comparing the actual and estimated figures, owners, executives, or investors can ascertain whether a business is on track to achieve its objectives. Understanding Budget Reporting Budget reporting also goes a
What is Book Value? Definition: Book value of equity is a financial metric that refers to the amount that investors receive when all liabilities are subtracted from company assets. The metric tries to outline the minimum amount that a business is worth. Likewise, book value indicates the amount that investors and creditors would receive upon
What is a Bond Indenture? Definition: Bond Indenture refers to an agreement associated with bond issuance. Likewise, it is a legal document between a bondholder and the bond issuer. The contract details and records the obligations of the person or firm issuing the bond as well as the benefits owed to the bondholder. The capital
What is Average Variable Cost? Definition: The average variable cost is simply a cost associated with the number of goods or services produced. The cost varies depending on the production volume. Similarly, whenever the production volume goes up, the average variable cost would also edge higher. Likewise, whenever production volume drops, the total average variable