Determining the burn rate and measuring costs to the baseline are elements of Expenditure activity.
Burn rate is simply associated with the total expenditure that is being done in a month and it also does not consider the cash inflows or we can see inflow of the revenue.
What is Burn Rate?
It is basically a measure of how the company spends its supply of cash as well as how fast it spends. When a company loses money then it is known as Burn Rate. It is generally expressed in monthly terms. It is simply considered as a measure of negative cash flow. A venture capital of a company is given to finance overhead before generating positive cash flow from operations.
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