A favorable material price variance suggests cost effective procurement by the company. Direct Material Price Variance (DMPV) shows the amount by which the total cost of raw materials has deviated from the planned cost as a result of a price change over a period. An unfavorable one might show supplier problems or rising costs in […]
In addition, an older invoice may not be acceptable as collateral for a loan. Further, an older invoice may not be acceptable for invoice discounting. And finally, an invoice is generally more difficult to collect the longer it remains outstanding. A company with a high FCF indicates good operating cash flow and surplus cash available […]
We have also examined how they serve as essential guides for various stakeholders, including investors, creditors, and internal management. The shareholder equity section mainly provides information about how the firm has been financed and how much profit it retains to reinvest further in the business. Items included in Shareholders’ equity are common stock, additional paid-in […]