Category Archives for Finance

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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Financial Terms for Managers (Part 2)

If you missed part 1 of this glossary of financial terms for general managers you can find it here. In this final part of the two part series we will cover item 21 onwards from the list below. Profit & Loss (P&L) Balance Sheet Income Statement Cash Flow Statement Contribution Margin Expense Allocation Return on […]

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Financial Terms for Managers (Part 1)

If you don’t have a financial background and have recently joined a publicly listed company, or have recently been made responsible for a business unit or profit and loss center, then you’re going to need a quick guide to get you up to speed on some of the terms you’re likely to encounter.The higher you […]

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Financial Training for Managers

I’m going to be covering financial topics more and more over the coming months here on EPM, as it’s something I believe every manager needs to be aware of. It never ceases to surprise me how many people I encounter in business who don’t understand anything about equities, annual accounts, and financial metrics. That strikes […]

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