## Social Security Taxes

Social Security tax is levied on citizens of United States by United States Govt. Under Federal Insurance Contributions Act.

## MEMO Entry

Memo entry doesn’t have any effect on general ledger, journal or balance sheet as it’s not recorded in these accounts.

## Non Cash Expenses

When expenses occurred without any cash flow then those expenses are termed as “Non-Cash Expenses”. For example, asset depreciation;

## Prime Cost

prime costs are directly related to production costs. These costs are consumed during the production process. It includes the labor cost and raw material cost as raw material and labor are the prime inputs in manufacturing a product.

## Spoilage

Spoilage defines leftovers in a manufacturing process. These are also called as product wastes. These can be of two types avoidable and unavoidable.

## Hurdle Rate

The hurdle rate is the minimal amount of rate of return an investor needed from his investment in a project. It also called as “minimum acceptable rate of return” (MAAR).

## Simple linear regression analysis

Simple linear regression analysis is a statistical method used to find out the relationship between two variables i.e. one independent and one dependent. Regression analysis helps to analyze data and ultimately reach a conclusion,

## Inventoriable Costs

Inventoriable costs are most associated with retail businesses. These costs are incurred during the process of obtaining a product and up to selling the product including holding cost, inventory transfer cost etc.

## Cash Flow importance for a business & how to do it effectively?

Lets’ define cash in a scientific way. If we take the company as a human body then cash is the blood. Then why blood, because it’s the most needed thing same as oxygen. A human can’t survive without blood and oxygen and a company can’t run without money, which is cash and human resource, which is an employee.

## High-Low Method

High-low method commonly used to distinguish the variable & fixed price by analyzing some given data. This price or cost can be of a product, product line, geographical sales region, store etc. This method also used to ascertain a budget.

## Top secrets to making your business reach new heights of growth

Every year many startups have been joining the startup journey but few exist for a longer period. The only way to survive in this competitive world is to have a strong marketing or business growth strategy.

## Variance Analysis

Variance analysis is simply a method to find out the difference between planned goals and actual or achieved goals. In terms of budgeting, it’s the difference between planned budget and actual budget spent or revenue achieved.

## Accounting Standards

Accounting standards define the rules & regulations of which accounting need to be done. Accounting standards form GAAP (Generally Accepted Accounting Principles).

## Insolvent

When the liabilities of a company or entity become higher than assets, this situation called insolvency and the company called as insolvent.

## Why financial planning is an essential part of a business growth?

Financial planning is a key growth factor for small businesses. Financial planning includes budget planning, cash-flow management, Income & expense management, investment planning etc.