Marginal Propensity To Import (MPM) Definition.

The Marginal Propensity To Import (MPM) is defined as the amount by which imports increase when disposable income rises by one unit. In other words, it is the ratio of change in imports to the change in disposable income. The MPM is used to measure the sensitivity of imports to changes in disposable income. A … Read more

How Activity Cost Drivers Can Allocate Indirect Costs.

Activity cost drivers are those factors that influence the cost of an activity. They can be used to allocate indirect costs to the products or services that consume those resources. The most common activity cost drivers are labor hours, machine hours, and the number of transactions. In order to allocate indirect costs using activity cost … Read more

What is a financial strategy?

The financial strategy is a part of the strategic management of a certain company that is in charge of controlling and planning everything related to the resources used to finance operations to achieve the previously set objectives. The main objective of the financial strategy is to be able to plan and foresee the way in … Read more