Tier 1 source6 answers cite this
Aswath Damodaran, NYU Stern
Aswath Damodaran, NYU Stern is a tier 1 source on AskedWell — Peer-reviewed / governmental / scientific. Highest institutional trust. It's cited in 6 cooking, fermentation, and baking answers. Click any answer below to read the cited claim in context.
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what is… · business
What is contribution margin?
Contribution margin is revenue minus all VARIABLE costs — the amount each sale "contributes" toward covering fixed costs and then profit. Formula: (revenue − variable costs) ÷ revenue. It is a different cut from gross margin: gross isolates COGS, contribution isolates variable cost. It drives break-even and per-unit pricing decisions.
Why we cite it here: Cost-structure + margin frameworks by sector
what is… · finance-light
What is APR?
APR (Annual Percentage Rate) is the yearly cost of borrowing as a percentage — it bundles the interest rate PLUS required fees, but does NOT account for compounding. It is the legal standard for quoting loans and credit cards (US Truth in Lending Act, 1968). A 24% APR card charges a 2% periodic rate each month on the balance.
Why we cite it here: Nominal vs effective rate mechanics
what is… · finance-light
What is APY?
APY (Annual Percentage Yield) is the yearly return on savings INCLUDING the effect of compounding — the true rate you actually earn. Formula: APY = (1 + r/n)^n − 1. It is the legal standard for quoting savings accounts and CDs (US Truth in Savings Act, 1991). APY is always ≥ the nominal rate; more frequent compounding produces a higher APY.
Why we cite it here: Effective annual rate mechanics
what is the difference between… · finance-light
What is the difference between APR and APY?
APR (Annual Percentage Rate) is what you PAY to borrow — it includes fees but ignores compounding. APY (Annual Percentage Yield) is what you EARN on savings — it includes compounding. For the same nominal rate, APY > APR because APY counts interest-on-interest. Loans and cards are quoted in APR (looks lower); savings in APY (looks higher).
Why we cite it here: Nominal vs effective rate mechanics
what is… · business
What is ARPU?
ARPU (Average Revenue Per User) is total revenue divided by number of users over a period. Formula: revenue ÷ active users. A SaaS earning $50,000/month from 1,000 users has a $50 ARPU. It feeds the LTV formula (LTV = ARPU × gross margin ÷ churn) and reveals whether growth comes from more users or more revenue per user.
Why we cite it here: Per-user revenue + unit-economics frameworks
what is… · business
What is burn multiple?
Burn multiple is net cash burned divided by net new ARR added in a period — how much you spend to add one dollar of recurring revenue. Formula: net burn ÷ net new ARR. Coined by David Sacks and tracked by Bessemer. Under 1× is amazing, 1–1.5× great, over 3× bad. It is the cleanest single measure of growth efficiency.
Why we cite it here: Cash-efficiency + growth-vs-profitability frameworks
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