What is Diluted Earnings Per Share? Definition: Diluted earnings per share (EPS) is the income that a shareholder would earn from every individual share of a company in the event of exercising of all convertible securities like warrants and options. When calculating the diluted EPS, accountants assume that holders of all convertible securities will actually
What is a CVP Graph? Definition: A CVP Graph, or cost volume profit chart, is a graphical representation that shows the relationship between the cost of production and overall sales. Companies plot the CVP graph to ascertain the potential impact of changes in sales volume on production costs and overall profits. The chart, in this
What is a Deferred Payment? Definition: A deferred payment in the traditional sense refers to a situation where a debt outstanding payment is pushed back further from the date in which the creditor was to initially receive payment. Often times a deferred payment is usually characterized by an agreement to repay the sum in question
What is Cumulative Preferred Stock? Definition: Cumulative preferred stock is a special type of stock class that accords shareholders some privileges when it comes to dividend payments. Proffered stock holdings come with a provision that requires companies to pay out dividends to stockholders even on suspending payments for some time because of financial challenges. Cumulative
What Is Cluster Sampling? Definition: Cluster sampling is a sampling method that entails the creation of small groups of data often referred to as clusters, from a wider population, for analysis purposes. By dividing the overall population into small groups, researchers are able to select random samples from any cluster or group for analysis. The
What is the Cost Function Formula? Definition: The cost function formula calculates the total fixed and variable costs that are required to produce a product. Management uses this formula to analysis whether production of product should stop or continue. To know whether it is making profit or losses, it necessary that a business or company
What is a Chief Financial Officer (CFO)? Definition: A chief financial officer (CFO) handles all related financial matters of an organization. It includes financial planning, record keeping, reporting, and also advising the organization on any impending financial risks. It is a ubiquitous term and is used interchangeably with chief financial and operating officer (CFOO). What