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The itemization of an individual's or firm's total income and total expenses for a set period of time, usually a month or a year. budget deficit. Also simply called spending. The amount by which spending exceeds revenue over a particular period of time; it is the opposite of budget surplus. The term may be applied to the budget of a government ...
For example, if a firm sinks $400 million on an enterprise software installation, that cost is "sunk" because it was a one-time expense and cannot be recovered once spent. A "fixed" cost would be monthly payments made as part of a service contract or licensing deal with the company that set up the software.
Capital expenditures are the funds used to acquire or upgrade a company's fixed assets, such as expenditures towards property, plant, or equipment (PP&E). [3] In the case when a capital expenditure constitutes a major financial decision for a company, the expenditure must be formalized at an annual shareholders meeting or a special meeting of the Board of Directors.
An expense report is a form of document that contains all the expenses that an individual has incurred as a result of the business operation. For example, if the owner of a business travels to another location for a meeting, the cost of travel, the meals, and all other expenses that he/she has incurred may be added to the expense report.
An asset depreciation at 15% per year over 20 years. In accountancy, depreciation refers to two aspects of the same concept: first, an actual reduction in the fair value of an asset, such as the decrease in value of factory equipment each year as it is used and wears, and second, the allocation in accounting statements of the original cost of the assets to periods in which the assets are used ...
In particular, "accretion expense" is a phrase used in topic 410-20 of the United States GAAP Codification of Accounting Standards (SFAS 143), which describes the reporting of asset retirement obligations. This kind of liability typically has a long and predetermined life on a company's balance sheet, and hence, as mentioned, it is valued via DCF.
In this situation it is generally uncommon to talk about half-life in the first place, but sometimes people will describe the decay in terms of its "first half-life", "second half-life", etc., where the first half-life is defined as the time required for decay from the initial value to 50%, the second half-life is from 50% to 25%, and so on.
A simplified cash flow model shows the payback period as the time from the project completion to the breakeven. In economics and business, specifically cost accounting, the break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even".