Examlex
An R-square value over .80 generally indicates that the cost equation is not very reliable for predicting costs at other volumes within the relevant range.
Incremental Cost
Incremental cost is the additional cost associated with producing one more unit of a product or service.
Operating Cash Flow
Operating cash flow is a measure of the cash generated by a company's regular business operations, indicating the company's ability to generate sufficient positive cash flow to maintain and grow its operations.
Net Present Value
The measurement of the profitability of an investment, calculated by subtracting the present values of cash outflows from the present values of cash inflows over a period of time.
Contribution Margin
The amount by which a product's sales exceed its variable costs, contributing towards covering fixed costs and generating profit.
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