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Cross Rates with Compounding Growth

In managerial accounting, we learn that sales is a function of price and volume, and that the growth of both sales and volume are...

Assessing Enterprise Risk Via Free Cash Flows

When looking at a company, from the smallest sole proprietorship to the largest multinational corporation, how does one assess risk?  Risk is simply the...

What is an Incremental Dollar Worth?

Whether you are an employee, a business owner, or a shareholder, you may have wondered what an incremental dollar of investment is worth to...

Contribution Margin

In business we hear the terms “top line growth” and “bottom line growth”, and what these are referring to is Sales (top line) and...

Gross Margin Variance Analysis

When a company improves their Gross Margin, they may wonder whether this was due to an increase in their sales (due either to an...