Category: financial terms

K Kaizen Kaizen is a Japanese term for continuous improvement. This is important in manufacturing companies to improve processes and increase quality. Key performance...

L Last in, first out Last in, first out (LIFO) is an assumption used in inventory valuation and other processes. LIFO assumes that the last products purchased or produced are the first sold...

M Managerial accounting Managerial accounting is the use of accounting information by managers to plan, evaluate, and control operations of the firm. Financial accounting is the process of...

N Net income Net income is total revenues minus total expenses. If the revenues are larger, the result is net income. If the expenses are larger, the result is a net loss. Net...

O Operating expense Operating expenses are costs associated with running a company. These expenses are also called general & administrative (G&A) expenses or selling, general, &...

P Plant assets Plant assets are noncurrent physical assets used in business operations. Plant assets include land and buildings. Plant assets are also called fixed assets. The category is...