Category Archives for Finance

Types of Revenue Streams

At the absolute core of every business are revenue streams. Revenue is obviously the cash a company earns from its customers, but you can also think of revenue (and revenue streams) as the parts of value generated by a business for which customers are willing to pay. In a very broad sense there are just […]

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Understanding Company Valuations

All publicly listed companies have valuations, that is, a price for which you can purchase the entire company, including both tangible and intangible assets. These valuations are readily available on the Internet (Yahoo Finance has up to the minute valuations), and yet I’m often surprised how few people in senior positions within publicly listed organizations […]

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Business Case Template

If you’re working for someone else within an organization and you want approval to begin work on a new initiative (project or program) you’re going to need a business case. The business case highlights the reasons for undertaking the initiative. Within corporations they aim to produce the maximum return on investment (ROI), and within government […]

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Activity Based Costing

Activity based costing helps us understand what it costs for an organization to make its products and services. It does this better than traditional cost accounting. In a nutshell, activity based costing works by turning indirect costs into direct costs. Traditional models of cost accounting work by allocating costs based on direct costs. Indirect costs are either […]

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