Glossary of Key Terms in MikesBikes Accounting

Gross Margin (gross profit), is the amount your company earned this year from the sale of its bikes minus manufacturing...

An overdraft is a short-term loan from the bank which allows your firm to borrow extra money to cover costs...

The factory capacity required to produce the target volumes of products can be determined using standard capacity units (SCU). This...

Lost Sales tells you how many more units each product would have sold if your firm had manufactured enough to...

Shareholder Value (SHV) is a measure of the current Share Price (which is the market value of one share in...

Earnings per share (EPS) is the portion of a company’s profit allocated to each share of common stock. Earnings per...

Advertising and Brand Advertising are important factors in generating demand for most products. The aim of Advertising is to raise...

Brand Advertising (branding) is investing in the Public Awareness of your company. Maintaining a constant level of Branding Expenditure will improve...

Public Relations (PR) is an important factor in generating demand for most products. The aim of spending in PR is...

The Debt to Equity Ratio (D/E ratio) measures the amount of debt (outstanding loans, overdraft, and taxes) your firm has...