Business Decisions

Analyst
An analyst is a professional who studies data and makes recommendations on various courses of business actions. Analysts may specialize in various fields such as budgets, credit, securities, financial patterns, sales, and more.
Appraise
The process of estimating the value of a property, often required for various financial, legal, and business purposes.
Avoidable Costs
Avoidable costs are expenses that can be eliminated if a particular decision or course of action is taken, such as ceasing production of a specific product. They are crucial in determining the financial impact of business decisions.
Control Premium
An amount paid above the average market value of shares to gain enough ownership to set policies, direct operations, and make decisions for a business. Contrast with Minority Discount.
Cost-Volume-Profit (CVP) Analysis
Cost-Volume-Profit (CVP) analysis is a method used by businesses to understand the inter-relationships between cost, volume, and profit. It helps in decision-making by determining the break-even point, analyzing the profit potential of a company, and evaluating the impact of different levels of sales and production.
Decision Model
A decision model is a mathematical simulation of the variables and elements inherent in business decisions, aimed at achieving the objectives of an organization by analyzing the relationships and constraints among those variables.
Killing
In a financial context, 'killing' refers to a significant reward or huge profit gained from an investment. It can also imply the act of stopping or halting a project or endeavor.
Real Option
A real option is an investment embedded within a project or a business activity that provides the firm with the flexibility to make decisions that can have significant financial implications.
Risk Analysis
The measurement and analysis of the risk associated with business, financial, and investment decisions. It involves the identification of risk, the classification of risks in regard to their impact and likelihood, and a consideration of how they might best be managed.
Throughput Accounting Ratio (TAR)
The Throughput Accounting Ratio (TAR) is a key metric in Throughput Accounting, used to assess the value that an investment or business decision will create relative to its costs.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.