Differences between Price Skimming and Penetration Pricing

Price skimming and penetration pricing both are pricing strategies used by companies when they launch a new product in the market; however both strategies are different from each other. Let’s look at some of the differences between price skimming and penetration pricing – In price skimming strategy the company sets higher price for product when [...]

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How to Calculate Profit

Every company or business operates in order to earn profit for its owners and at the end of year after happening of so many things profit figure is arrived at, so the question is how to calculate profit. Calculation of profit for a business is complex procedure as it involves so many variables; however let’s [...]

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Limitations of Statistics

Statistics is a field of study where data is presented in the form of numbers and then that data is analyzed and results of that analyzed data is made available for interpretation by interested parties. Statistics in majority of cases takes into account only sample and not the whole population. It can be better understood [...]

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Features of Capital Budgeting

Capital budgeting refers to that technique using which a company identifies and evaluates the project where the cash flow of the company will be higher and greater than any other project under consideration. It can be better understood with the help of a example suppose a company has 3 projects under consideration all requiring expenditure [...]

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Examples of Accrued Income

Dictionary meaning of the word accrue is accumulated and in case of accounting accrued income refers to that income which the company or individual has earned or accumulated but has not received that income. In case of accounting accrued income is taken into account for the year in which it is earned and not in [...]

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