Owners of businesses invest capital in businesses and need accurate information to be able to access their level of profit or loss from their business operations. This allows them to know if business operations, as well as capital investments, need to be expanded or contracted. Managerial accounting only exists to help make these decisions much…
Read more
Nonprofit Statement of Financial Position: Guide and Template RP Finance
And be the trusted financial financial statements for nonprofits partner you can turn to for answers to your questions and expert financial advice. You should look at your Statement of Activities every month and compare to previous periods. Identify trends and changes in sources of revenue, expenses, and changes to net assets. Or create reports…
Read more
Lesson 1: Opportunity Cost Foundation For Teaching Economics
Since resources are limited, every time you make a choice about how to use them, you are also choosing to forego other options. Economists use the term opportunity cost to indicate what must be given up to obtain something that’s desired. A fundamental principle of economics is that every choice has an opportunity cost. How…
Read more
Fixed vs Variable Costs
These costs are dynamic and respond to changes in business operations. The upside with fixed costs is that as you produce more goods or services, your relative cost of production decreases (an effect of economies of scale). That is, your fixed costs are the same to produce 100 units as they are to produce 200…
Read more
