Corporate governance is concerned with overseeing and ensuring that a company adheres to internal policies, procedures, and regulatory requirements. It involves setting the direction for the company, monitoring performance, and making sure that policies are followed to maintain ethical standards and accountability.
The current ratio is used to assess a company’s ability to meet its short-term liabilities with its short-term assets. It is a key indicator of short-term liquidity.
The balanced scorecard is a performance management tool that integrates both financial and non-financial measures to provide a more comprehensive view of organizational performance. It helps in balancing short-term financial performance with long-term strategic goals and non-financial factors such as customer satisfaction and internal processes.
Economic Order Quantity (EOQ) is a formula used in inventory management to determine the optimal order quantity that minimizes the total costs of inventory, including ordering costs and holding costs.
For decision-making purposes, variable costs are most relevant as they change with the level of production or sales volume. These costs directly impact the cost of producing additional units or changing production levels.
