direct method

(noun)

A method of cash flow accounting that records all cash inflows and outflows. It does not take non-cash item valuations into account.

Related Terms

Examples of direct method in the following topics:

  • Direct and Indirect Measurement

    • Cash flow statements can be measured via the direct method and the indirect method to determine overall liquidity.
    • When understanding how an organization creates a statement of cash flows, it's important to know there are two established methods: the direct method and the indirect method.
    • As the name implies, the direct method of reporting cash flows identifies clear circumstances of cash inflow or outflow.
    • The indirect method is quite a bit more involved than the direct method, as it incorporates valuation changes in non-cash assets as well.
    • Differentiate between the direct and indirect methods of cash flow accounting, with a particular focus on the more popular indirect method

  • Telemarketing

    • Telemarketing is a method of direct marketing where a salesperson solicits prospective customers directly, usually over the phone.
    • Telemarketing is a method of direct marketing in which a salesperson solicits prospective customers to buy products or services, either over the phone or through a subsequent face-to-face or Web conferencing appointment scheduled during the call .
    • While many methods of marketing will suffer this criticism to some degree by those who prefer not to be disturbed, telemarketing seems to be criticized particularly because of its direct, intrusive nature.

  • Digital Marketing

    • The modernization and mobility of the consumer has forced marketers to innovate, spawning the direct digital marketing concept.
    • Direct digital marketing is an addressable digital marketing method.
    • Traditional direct marketing is achieved using a customer's postal address.
    • With direct digital marketing addressability comes in one of three forms: an email address, a Web browser cookie, and a mobile phone number.

  • Joint ventures and direct investment

    • Joint ventures require a greater commitment from firms than licensing or the various other exporting methods.
    • An organization using this approach makes a direct investment in one or more foreign nations.

  • Cost-Based Pricing

    • Cost-plus pricing is the simplest pricing method used by companies.
    • Cost-plus pricing is the simplest pricing method.
    • The other is direct cost pricing, which is variable costs plus a % markup.
    • The latter is only used in periods of high competition as this method usually leads to a loss in the long run.This method, although simple, does not take demand into account, and there is no way of determining if potential customers will purchase the product at the calculated price.
    • Cost-plus pricing is a method used by companies to maximize their profits.

  • Elements to job design

    • Allocating jobs and tasks means specifying the contents, method and relationships of jobs to satisfy technological and organizational requirements as well as the personal needs of jobholders.
    • If successful job design is not implemented, than the companies general strategy and direction will be strongly diverted.
    • Motivation describes forces within the individual that account for the level, direction, and persistence of effort expended at work (Schermerhorn, Job Design Alternatives, 2006).
    • Reward systems include compensation, bonuses, raises, job security, benefits, and various other methods of reward for employees.

  • Performance appraisal

    • The standards on which the objective is compared with should also be validated using the SMART method.
    • Numerous methods exist for gauging an employee's performance, and each provides strengths and weaknesses for given environments.
    • Graphic rating scales: This method involves assigning some form of rating system to pertinent traits.
    • Behavioral methods: A broad category encompassing several methods with similar attributes.
    • Susan Heathfield suggests that quarterly performance development meetings can allow for clear direction towards performance goals (Heathfield, Performance Management is NOT an Annual Appraisal).

  • Electronic Banking

    • Electronic banking includes such services as ATMs, direct deposits, electronic fund transfers, and online banking.
    • Another electronic banking service available today is direct deposit.
    • Direct deposit is popular among people who receive Social Security checks or pension checks because it saves them the trouble of travelling to the bank to deposit them in person.
    • Banks have found online banking so much cheaper than traditional in-bank methods that some have encouraged depositors and other customers to bank from home or via machines by charging them fees for the privilege of talking to a teller!

  • Gross Domestic Product

    • The product approach is the most direct, summing the outputs of every class of enterprise to arrive at the total.
    • The production approach is also known as the Net Product or Value Added method.
    • This method consists of three stages:
    • After classifying economic activities, the gross output of each sector is calculated by either of the following two methods:
    • GDI should provide the same amount as the expenditure method.

  • Philosophies

    • Many of the methods not only provide techniques but also have associated quality culture (i.e., people factors).
    • These methods are now adopted by the same western countries that decades earlier derided Japanese methods.
    • Leadership: Leaders of an organization establish unity of purpose and direction of it.