Solution Matrix • Cost-Benefit-Analysis

Fiscal year

The fiscal year is the accounting or tax year of a company or the government, as opposed to the calendar year. Income statements summarize earnings over the fiscal year, and balance sheets usually summarize the company’s assets, liabilities and owner’s equities at the end of the fiscal year.

Managers at all levels usually prefer to see cost of ownership or cost/benefit analyses organized around a fiscal year time structure because their financial reporting (and measurement), budgeting, and sales performance accounting are organized around fiscal years, quarters, and months.

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