Accumulated Depreciation
The total depreciation recorded on an asset since it was placed in service.
Read definition →TYS Accounting Glossary
Profitability, Planning & Business Performance
Terms that help management evaluate profitability, spending, operating results, assets, and plans for growth.
Home > Accounting Glossary > Profitability, Planning & Business Performance
27 terms in this topic
Amortization
The systematic allocation of an intangible asset’s cost or certain financing costs over a defined period.
Read definition →Break-even Point
The sales level at which total revenue equals total costs, producing neither a profit nor a loss.
Read definition →Budget
A financial plan estimating expected revenue, expenses, cash flow, and other results for a future period.
Read definition →Capital Asset
A long-term asset such as equipment, vehicles, buildings, or machinery used in operations.
Read definition →Capital Expenditure
Money spent to acquire, improve, or extend the useful life of a long-term asset.
Read definition →Cost of Sales
The direct costs associated with generating revenue, including project costs in many construction businesses.
Read definition →Depreciation
The systematic allocation of a tangible long-term asset’s cost over its estimated useful life.
Read definition →Direct Cost
A cost that can be specifically connected to a product, service, project, department, or customer.
Read definition →Earnings Before Interest and Taxes (EBIT)
A measure of operating profit before interest expense and income taxes.
Read definition →Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
A non-GAAP measure often used to evaluate operating performance before specified expenses.
Read definition →Fixed Asset
A long-term tangible asset used in business operations, such as machinery, furniture, vehicles, or buildings.
Read definition →General and Administrative Expense
Indirect costs associated with managing and operating a business, commonly called G&A expenses.
Read definition →Goodwill
An intangible asset that may arise when one company acquires another for more than the fair value of identifiable net assets.
Read definition →Gross Margin
The amount remaining after direct costs are subtracted from revenue, often expressed as a dollar amount or percentage.
Read definition →Gross Profit
Revenue minus the direct cost of goods sold or cost of sales.
Read definition →Indirect Cost
A cost that supports multiple activities and cannot be easily assigned to one product, project, or service.
Read definition →Intangible Asset
A nonphysical asset with value, such as a patent, trademark, license, customer relationship, or software right.
Read definition →Net Profit Margin
Net income divided by revenue, often expressed as a percentage.
Read definition →Operating Expense
A cost incurred through normal business operations that is not a direct cost of producing goods or services.
Read definition →Operating Income
Profit from normal operations before interest and income taxes.
Read definition →Overhead
Indirect business costs required to operate a company, such as rent, insurance, utilities, and administrative payroll.
Read definition →Return on Assets
A profitability measure that compares net income with average total assets, often called ROA.
Read definition →Return on Equity
A profitability measure comparing net income with average equity, often called ROE.
Read definition →Straight-line Depreciation
A depreciation method that records an equal amount of expense during each period of an asset’s useful life.
Read definition →Useful Life
The estimated period during which an asset is expected to be used or provide economic benefit.
Read definition →Variance
The difference between an actual result and a planned, budgeted, estimated, or prior-period result.
Read definition →Work with a trusted advisor
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