NPV calculates present value of future cash flows of a project. Money is worth more now than in the future due to time value. NPV equals present value of inflows minus present value of outflows
Tax condition type must be defined with condition class D(Taxes). Customer tax class must be created using transaction OVk3. Material tax class must be created using transaction OVK4. Tax condition types must be assigned to specific countries
ABC identifies activities and assigns costs to products based on actual consumption. Assigns more indirect costs to direct costs compared to conventional costing. Helps identify unprofitable products and inefficient processes
FTE shows number of full-time equivalent employees in a company. One FTE equals 40 hours weekly for full-time employees. FTE helps compare work even with odd hours
CPI measures changes in product costs over time. Official CPI uses aggregated data from urban US districts. Baseline for CPI is 100% of itself
Inflation measures currency value changes over time. Prices rise as currency value changes. Inflation rate shows price increase speed over specific period