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Control ratios: Three important ratios are usually used by the management to find out whether the variations from budgeted results are unfavorable or favorable. These ratios are expressed as percentages and any ratio beyond 100% is favorable and an ratio less than 100% is unfavorable. The three ratios are:
a) Activity Ratio: this ratio is a measure of the level of activity attained over a period.
b) Capacity Ratio: capacity ratio specifies whether and to what extent budgeted hours of activity are actually utilized..
c) Efficiency Ratio: Efficiency ratio specifies the degree of efficiency attained in production.
Definition of cost of capital In analyzing the cost of capital it is presumed that business risk of the firm remains unchanged (i.e., that projects accepted don't affect the va
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On Completion of her introductory finance course, Kieran was so pleased with the amount of useful and interesting knowledge she gained that she convinced her parents, who were weal
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