Is Account Payable an Expense? Explained

The change in accounts payable is recorded on the cash flow statement (CFS) in the cash flow from operating activities (CFO) section. Said differently, the accounts payable of a company (or buyer) is the accounts receivable of the 3rd party supplier or vendor owed money for goods and services already delivered. No, accounts payable is […]

Invoice Finance 101: Factoring vs Discounting Explained

The Invoice/bill discounting company provides the financing by charging a service charge for its services. Invoice discounting is a flexible and cost-effective option for businesses looking for quick access to cash without going through the long and complex process of traditional lending. Invoice discounting, also known as accounts receivable financing, involves a business selling its […]

High-Low Method Formula What Is It, Examples, Calculation

Another drawback of the high-low method is the ready availability of better cost estimation tools. For example, the least-squares regression is a method that takes into consideration all data points and creates an optimized cost cafeteria plans grow in popularity estimate. It can be easily and quickly used to yield significantly better estimates than the […]