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Common-base-year analysis |
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Definition of Common-base-year analysisCommon-base-year analysisThe representing of accounting information over multiple years as percentages
Related Terms:activity analysisthe process of detailing the various repetitive actions that are performed in making a product or Activity-based budgetingA method of budgeting that develops budgets based on expected activities and cost drivers – see also activity-based costing. activity-based budgeting (ABB)planning approach applying activity drivers to estimate the levels and costs of activities necessary to provide the budgeted quantity and Activity-based costingA method of costing that uses cost pools to accumulate the cost of significant business activities and then assigns the costs from the cost pools to products or services based on cost drivers. activity based costing (ABC)A relatively new method advocated for the activity-based costing (ABC)a process using multiple cost drivers to predict and allocate costs to products and services; Activity-based costing (ABC)A cost allocation system that compiles costs and assigns ![]() activity-based management (ABM)a discipline that focuses on the activities incurred during the production/performance process as the way to improve the value received Allocation base A measure of activity or volume such as labourhours, machine hours or volume of production Asset-based financingMethods of financing in which lenders and equity investors look principally to the Asset-Based FinancingLoans granted usually by a financial institution where the asset being financed constitutes the sole security given to the lender. attribute-based costing (ABC II)an extension of activitybased costing using cost-benefit analysis (based on increased customer utility) to choose the product attribute BARRA's performance analysis (PERFAN)A method developed by BARRA, a consulting firm in Base interest rateRelated: Benchmark interest rate. Base probability of lossThe probability of not achieving a portfolio expected return. Base YearThe reference year when constructing a price index. By tradition it is given the value 100. ![]() BOOK VALUE OF COMMON STOCKThe theoretical amount per share that each stockholder would receive if a company’s assets were sold on the balance sheet’s date. Book value equals: Break-even analysisAn analysis of the level of sales at which a project would make zero profit. break-even analysisanalysis of the level of sales at which the company breaks even. Break-Even AnalysisAn analytical technique for studying the relationships between fixed cost, variable cost, and profits. A breakeven chart graphically depicts the nature of breakeven analysis. The breakeven point represents the volume of sales at which total costs equal total revenues (that is, profits equal zero). capital investment analysisRefers to various techniques and procedures Cash flow per common shareCash flow from operations minus preferred stock dividends, divided by the Cluster analysisA statistical technique that identifies clusters of stocks whose returns are highly correlated common body of knowledge (CBK)the minimum set of knowledge needed by a person to function effectively in a particular field Common marketAn agreement between two or more countries that permits the free movement of capital Common SharesAre equity instruments that take no security against assets, have no fixed terms of repayment and pay no fixed dividends. common-size balance sheetBalance sheet that presents items as a percentage of total assets. common-size income statementIncome statement that presents items as a percentage of revenues. Common stockThese are securities that represent equity ownership in a company. common shares let an Common stockShares of ownership sold to the public. Common StockA financial security that represents an ownership claim on the common stockOwnership shares in a publicly held corporation. Common StockThat part of the capital stock of a corporation that carries voting rights and represents Common stock equivalentA convertible security that is traded like an equity issue because the optioned Common stock marketThe market for trading equities, not including preferred stock. Common stock/other equityValue of outstanding common shares at par, plus accumulated retained Common stock ratiosRatios that are designed to measure the relative claims of stockholders to earnings Comparative credit analysisA method of analysis in which a firm is compared to others that have a desired correlation analysisan analytical technique that uses statistical Cost-Benefit AnalysisThe calculation and comparison of the costs and benefits of a policy or project. cost-benefit analysis the analytical process of comparing therelative costs and benefits that result from a specific course cost driver analysisthe process of investigating, quantifying, Cost of Common StockThe rate of return required by the investors in the common stock of Cost–volume–profit analysis (CVP)A method for understanding the relationship between revenue, cost and sales volume. Credit analysisThe process of analyzing information on companies and bond issues in order to estimate the credit analysisProcedure to determine the likelihood a customer will pay its bills. Discriminant analysisA statistical process that links the probability of default to a specified set of financial ratios. Earnings per share of common stockHow much profit a company made on each share of common stock this year. End-of-year conventionTreating cash flows as if they occur at the end of a year as opposed to the date Equity-based insuranceLife insurance or annuity product in which the cash value and benefit level fluctuate according to the performance of an equity portfolio. Factor analysisA statistical procedure that seeks to explain a certain phenomenon, such as the return on a Failure analysisThe examination of failure incidents to identify components Financial Trend AnalysisProcess of analyzing financial statements of a company for any continuing relationship. Financial yearThe accounting period adopted by a business for the production of its financial statements. Fiscal yearA 12 month period over which a company reports on the activities that Fundamental analysisSecurity analysis that seeks to detect misvalued securities by an analysis of the firm's Horizon analysisAn analysis of returns using total return to assess performance over some investment horizon. Horizontal analysisThe process of dividing each expense item of a given year by the same expense item in incremental analysisa process of evaluating changes that least squares regression analysisa statistical technique that investigates the association between dependent and independent variables; it determines the line of "best fit" for a set of observations by minimizing the sum of the squares Mean-variance analysisEvaluation of risky prospects based on the expected value and variance of possible outcomes. Monetary BaseSee money base. Money baseComposed of currency and coins outside the banking system plus liabilities to the deposit money banks. Money BaseCash plus deposits of the commercial banks with the central bank. Multiple-discriminant analysis (MDA)Statistical technique for distinguishing between two groups on the Pareto analysisa method of ranking the causes of variation Pareto analysisThe 80:20 ratio that states that 20% of the variables included in an Performance attribution analysisThe decomposition of a money manager's performance results to explain Policy YearPeriod between two policy anniversaries. Priority-based budgetA budget that allocates funds in line with strategies. Pro forma capital structure analysisA method of analyzing the impact of alternative capital structure Ratio analysisA method of analysing financial reports to interpret trends and make comparisons by using ratios – two numbers, with one generally expressed as a percentage of the other. Ratio analysisA method of relating numbers from the various financial statements to one another in order to get meaningful information for comparison. Ratio AnalysisThe process of using financial ratios, calculated from key accounts Regression analysisA statistical technique that can be used to estimate relationships between variables. Regression analysisStatistical analysis techniques that quantify the Restatement of Prior-Year Financial StatementsA recasting of prior-year financial statements to remove the effects of an error or other adjustment and report them on a new basis. Return on Common Equity RatioA measure of the percentage return earned on the value of the Scenario analysisThe use of horizon analysis to project bond total returns under different reinvestment rates scenario analysisProject analysis given a particular combination of assumptions. Sensitivity analysisanalysis of the effect on a project's profitability due to changes in sales, cost, and so on. Sensitivity analysisAn approach to understanding how changes in one variable of cost–volume–profit analysis are affected by changes in the other variables. sensitivity analysisa process of determining the amount of change that must occur in a variable before a different decision would be made sensitivity analysisanalysis of the effects of changes in sales, costs, and so on, on project profitability. simulation analysisEstimation of the probabilities of different possible outcomes, e.g., from an investment project. SUM-OF-THE-YEARS’ DIGITSAn accelerated depreciation method that makes the sum of the digits in an asset’s expected Sum-of-the-years'-digits depreciationMethod of accelerated depreciation. Technical analysisSecurity analysis that seeks to detect and interpret patterns in past security prices. Value-based managementA variety of approaches that emphasize increasing shareholder value as the primary goal of every business. Variance analysisA method of budgetary control that compares actual performance against plan, investigates the causes of the variance and takes corrective action to ensure that targets are achieved. variance analysisthe process of categorizing the nature (favorable or unfavorable) of the differences between standard and actual costs and determining the reasons for those differences Vertical analysisThe process of dividing each expense item in the income statement of a given year by net VERTICAL ANALYSISA financial analysis technique that relates key amounts on the income statement and balance sheet to a 100 percent or base figure for the present and previous year. Yearly Renewable Term InsuranceSometimes, simply called YRT, this is a form of term life insurance that may be renewed annually without evidence of insurability to a stated age. zero-base budgetinga comprehensive budgeting process Zero-based budgetingA method of budgeting that ignores historical budgetary allocations and identifies the costs that are necessary to implement agreed strategies. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |