Accounting / August 3, 2018 / Khloe Santiago
Some costs are difficult to assign through this method of cost accounting. Indirect costs, such as management and office staff salaries, are sometimes difficult to assign to a product. For this reason, this method has found its niche in the manufacturing sector.
The cash flows from operating activities section comes first and tells you how much cash the company generated from its core business, as opposed to peripheral activities such as investing or borrowing. This is the area you should focus most of your attention on because it paints the best picture of how well a firm's business operations are producing cash that will ultimately benefit shareholders.
Tenants who lease commercial properties sign various types of leases structured to put more responsibility on the tenant and provide greater up-front profit for the landlord. For example, some commercial leases require the tenant to pay rent plus the landlord's operational costs, while others require tenants to pay rent plus property taxes and insurance. The four common types of commercial real estate leases include: single-net leases, in which the tenant is responsible for paying property taxes; double-net leases, which make a tenant responsible for property taxes and insurance; triple-net leases, where tenants must pay property taxes, insurance and maintenance; and gross leases, in which the tenant pays rent while the landlord is responsible for other costs.
The good news is that you don’t have to be an accountant or a financial planner to negotiate in the world of business finance. Here are some business finance terms and definitions that will help you find your way to successful small business funding.
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