## 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.

## 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.

## 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.

## Budget variance

Budget variance is the difference between the budgeted or planned total amount of revenue or expense and the actual amount of revenue or expense. Budget variance helps a business owner to fix an achievable target amount in a year after evaluating last years budget difference.

## Zero Based Budgeting

Zeo based budgeting stands on the concept of zero-base. Every business plans out a budget plan for every year and never go for a recheck on all activities those included in the budget.

## Average Collection Period

Average collection period is the total time a business undertakes to collect its payments for the goods or services sold in terms of credit. Collection period is different from companies to companies.

## Margin of safety

The margin of safety is the safety level before a company reaches its breakeven point. A margin of safety shows a company’s sales level after which the sales value will decrease. A margin of safety is the most needed factor for an investor to analyze the company’s current situation.

## Reorder Point

Reorder point is the level where the stock needs to fill again. Usually, what happens a company always set a minimum amount level of a stock and the stock needs to record for reordering when it reaches that level.

## Operating Cycle

Operating cycle can be defined as the total time starting from buying inventory and selling the inventory in order to generate cash to fulfill rest operational expenses. Defining the length of an operating cycle is very crucial for a business in order to be always ready to meet future expenses.

## Income Statement

Income statement shows a company’s income during a particular period. It also involves profit & loss statement. Usually, Income statement used by business owners to find out how much profit they earn in a particular financial year or a period.

## Joint Cost

Joint cost is the cost incurred during a manufacturing process. When a manufacturer produces different products with same raw material inputs, then the cost consumed during this whole production process is called joint cost. For example, Dairy firms use milk as the raw material an produces curd, cream, ghee etc.

## Retained earnings

Retained earnings is the net amount retained by the entity or corporation over a period of time until the reporting time or fiscal year end. This total amount excludes any dividends that need to pay out to investors.

## Appreciation

Appreciation is the increase in the value of assets over a period of time, unlike depreciation. Appreciation occurred due to certain factors like increase in demand, change in inflation rates etc. It’s totally opposite of depreciation. Appreciation is of two types, capital appreciation & currency appreciation.

## Income Tax Rebate

Income tax rebate can be claimed by resident individuals whether male or female & senior citizens or you can say by all taxpayers.

## Income Tax filing dates, detail process & charges

As the name suggests it’s a tax levied on incomes or earnings by companies & individuals. The government imposes this tax to provide better infrastructure & facilities to citizens also for some Government’s own activities. Income tax needs to be filed every year by individuals & entities. The only sector exempted from income tax is agriculture.

## Indirect Cost

Indirect cost as the name suggests costs those are not directly linked to any product, project, facility etc. are called indirect costs. Examples are administration costs, operations costs, product cost etc. Indirect cost is of two types: fixed cost and variable cost.

## Invoice

An invoice represents the sum due for a service or product provided by a seller. It also called a bill.

## Organisation Chart

Organisation chart represents the company’s structure which typically includes the hierarchy of employees, their roles and relations with each other.

## Marginal Revenue

Marginal revenue can be defined as the extra revenue earned by selling one extra unit of product. It’s beneficial for a company as the profit margin increases with same marginal cost. It would be profitable, as long as the rate of marginal revenue remains higher.