Methodology at which a part of the indirect cost is allocated to the direct costs centers and as such become a part of the production cost price of the product.

Basis for “translating” events into numbers.

Allocation of the cost to the period depends on the usage for revenue purposes. When purchased, produced or paid is irrelevant. If produced but not sold, on balance sheet. If used for revenue but no invoice received jet a manual booking is made (latter is accrual).

Accounting Principle: All costs are correct.

Current Assets – inventories / short term debt.

Method of cost allocation that uses cost drivers like number of employees for the HR department or M2 for housing as the basis for the allocation of the secondary costs to the primary functions based on their usage.

How well is the company managed?

The Annual report consists out of the report from the Corporate Board and the Supervisory Board, the financial statements, the accountant’s declaration and other information with detailed explanations of the financials.

On the left side of the Balance sheet all items are listed the company uses to run the business.

Activity ratio’s  Assets / Revenues * 365.

White paper Balance sheet

White paper Cash flow or view the Video lesson

White papers Investment

White paper Profit and loss

White paper Solvency