Finance FAQs

Is there a rule of thumb for office rent or lease per gross income?
There is a GRM (Gross Rent Multiplier) that compares the total rental/lease income to the value or price of the property. The price can run 8 to 10 times the gross income, but that can vary based on market conditions, interest rates, mana...... More »
How does one arrive at a competitive pricing strategy for a multi-service practice where there are no specific products in question?
If your question is competitive pricing of services then utilize ABC (Activity Based Costing) to determine the Cost per activity related to the service. Accumulate all such activities into a package and arrive at Cost per Package. Analy...... More »
How do the average household income of the different countries compare?
In order to answer this question it is best to look at median household income. Median household income represents the statistical mid-point, with half of all households making more and half making less. For the developed nations, median...... More »
What is the marginal cost of capital?
Marginal or incremental cost of capital is cost of the additional capital raised in a given period ...... More »
What is the importance of strategic management towards the success of a business?
Strategic management used to play a different after the Second Word War. Strategic plans of the past usually range 3 to 5 years. Some companies could even have plans for 10 good years. That is not possible today given rapid evolution of our societ...... More »
Which accounting applications are your familiar with?
Discuss the applications you have worked with. Focus on how you implemented the application, the steps taken during the conversion and integration of the accounting system and the training of staff to use the application. ...... More »
What accounts payable applications are your familiar with?
With accounting job interview questions like this first list the applications you have used and then expand on the value of the solutions they offered to your particular business. Look at aspects such as managing vendor information, approval contr...... More »
Where the financial accounting fails the cost accounting for is rescue but still there are some limitations deficiencies in the system?
Accounting has been a part of today's life in today's environment and it has to be given more progress because it is very important ...... More »
What is the difference between cost accounting management accounting and financial accounting?
For simplistic purposes, there is not much, if any, difference between "cost accounting" and "management accounting". These terms refer to the accounting techniques used internally by a company's management to determine the costs of running th...... More »
What is the relationship between cost accounting financial accounting and managerial accounting?
Financial accounting relates to the information presented based on past events and records. Cost and managerial accounting is the presentation of financial information to the management to be used in decision making while in managerial a...... More »