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Contribution Margin

The difference between sales revenue and variable costs. It contributes toward covering fixed costs and generating profit. Used in cost-volume-profit analysis.

Security Investments (Long-Term)

Shares, bonds, or other instruments intended to be held beyond one year. Provides income and diversification for excess funds. Classified as noncurrent assets.

Notes Payable

Formal written promises to pay lenders, often with interest, within a set timeframe. They may be short-term or long-term depending on maturity. Notes provide structured financing.

On-Premise Accounting

Software installed directly on a company’s local computers or servers. Provides more direct control over data and security but requires manual updates and maintenance. Common for businesses that prefer internal hosting.

Insurance Expense

Premiums paid for various insurance policies such as health, liability, or property. Recognized over the coverage period. Provides risk protection.