Value at the individual level is strictly personal. But as more buyers for the same item come into play the price of the item begins to stabilize. If there are hundreds of thousands of buyers, the price reaches a high level of consistency or what is called ‘Fair Market Value’.
Month: October 2015
Most small businesses use the annual inventory system to determine ending inventory value. Any adjustments are to the income statement inside the cost of goods sold formula. This is acceptable if management only wanted accurate financial statements once a year. But this is unrealistic for a small business.
The terms ‘Front’ and ‘Back Office’ are used in business to refer to the form of office work conducted. In general the front office interacts with customers/clients and handles the day-to-day activity. The back office is where management leads the organization and handles the underlying financial affairs.
Every small business has a physical spot to process paperwork, whether it’s a notebook in a truck for a contractor or a large building complex with tens of employees for a multi-million dollar operation, the paperwork has to get processed somewhere. But there is more to this than the physical facility, it is more about the people and process involved that define the office.