BIG BATH Definition

Bookmark and Share

BIG BATH is a business strategy in which a company manipulates its income statement to make poor results look even worse. Strategy being that the following year will show significant improvement. Big bath is sometimes employed by new CEOs to make their first years results more impressive by employing big bath accounting to prior year results.

Learn new Accounting Terms

UNFAVORABLE VARIANCE is the opposite of favorable variance. See FAVORABLE VARIANCE.

OPERATING MARGIN is the ratio of operating income to sales revenue.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.