What is Uncertainty? Uncertainty simply means the lack of certainty or sureness of an event. In accounting, uncertainty refers to the inability to foretell consequences or outcomes because there is a lack of knowledge or bases on which to make any predictions. The term is often widely used in financial accounting, especially because there are…
What is a Self-Regulatory Organization (SRO)? A Self-Regulatory Organization or SRO is an organization that is formed to regulate certain professions or industries. They are usually non-governmental organizations, established with the aim of creating rules to promote order among businesses and organizations. Self-Regulatory Organizations exist either in the absence of government regulation or…
What is an Original Equipment Manufacturer (OEM)? An Original Equipment Manufacturer or OEM is a company that manufactures and sells products or parts of a product that their buyer, another company, sells to its own customers while putting the products under its own branding. OEMs commonly operate in the auto and computer industries. …
What is a Sin Tax? A sin tax is a tax levied on goods or services that are considered to be harmful or costly to society. The goods and services commonly include tobacco, alcohol, sugar-added drinks, and gambling. The main purposes of imposing sin taxes are to reduce the consumption of harmful goods and to…
What is an Ethical Dilemma? An ethical dilemma (ethical paradox or moral dilemma) is a problem in the decision-making process between two possible options, neither of which is absolutely acceptable from an ethical perspective. Although we face many ethical and moral problems in our lives, most of them come with relatively straightforward solutions. On the…
What is Agile Project Management? The Agile Project Management approach arose in the early 2000s when software development teams realized they were unable to quickly and flexibly deliver systems while utilizing traditional processes (e.g., waterfall method). The agile approach to project management focuses on people and continuous improvements to the system through shorter development cycles….
What is Project Management? Project management refers to how a project is designed and organized to produce an end product that will make an impact on an organization. It is where knowledge, skills, experience, and processes are applied to meet an organization’s objectives. Projects that are new, time-bound, involve multiple parties and require risk control…
What is a Permutation? A permutation is a mathematical technique that determines the number of possible arrangements in a set when the order of the arrangements matters. Common mathematical problems involve choosing only several items from a set of items in a certain order. Permutations are frequently confused with another mathematical technique called combinations. However,…
What is a Combination? A combination is a mathematical technique that determines the number of possible arrangements in a collection of items where the order of the selection does not matter. In combinations, you can select the items in any order. Combinations can be confused with permutations. However, in permutations, the order of the selected…
What is the Total Probability Rule? The Total Probability Rule (also known as the Law of Total Probability) is a fundamental rule in statistics relating to conditional and marginal probabilities. The rule states that if the probability of an event is unknown, it can be calculated using the known probabilities of several distinct events. Consider…
