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Tip of the Day

Tip of the Day Increase your 401(k) Contribution

Increase your 401(k) Contribution - The minute you receive a raise at work, because it is bonus money that has not been spoken for yet, you should raise the amount...

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Variable Committed Expense

Variable Committed Expense - Variable committed expenses can happen from time to time, more than the usual or standard costs, even recurring occasionally. They can be temporary and/or periodic, for a short term, ever-so-often, higher, lower, fluctuating, but ever-present. Allowances for this flexibility and incidence is important in budgeting to off-set these occurrences. Necessary expense, higher and lower at times, can not be avoided, but their impacts minimized effectively. Anticipation, cutting cost, avoiding waste are countermeasures to off-set these impacts.  Downtime, maintenance are part of the budgeted costs of running/operating a business, projected cost in budgets. Parts and labor for example, how often equipment (will), break-downs occur, can be budgeted for, but not precisely predicted.  Having reserves and contingencies built-in holds the key to successfully dealing with these realities and challenges. Actions taken will center around minimizing escalation and upswings of these committed expenses, to ensure business continuity and functioning at all times. Planning, budgeting and resource management can go along way to address these challenges.

 

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Daily Definition

Definition of the Day Exchange Ratio

Exchange ratio - An exchange ratio refers to the number of shares an acquiring company's shareholders will receive in exchange for one share in the acquiring company. Each exchange ratio computed would be set according to the acquirement that would be stipulated in the merger or acquisitions agreement at the...

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