What Makes the Analysis of a Service Company Different Than

question 99

Essay

What makes the analysis of a service company different than analysis of a manufacturing company?

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Definitions:

Fair Market Value

is an estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller in the market.

Identifiable Assets

Assets that can be separately identified and valued in a business combination, distinguishable from goodwill.

FIFO System

First-In, First-Out method, an inventory valuation strategy where the oldest items are sold or used first.

Cost Method

An accounting approach used for recording investments, where the investment is recorded at cost and adjusted only for dividends received and not for changes in market value.