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Financial Accounting Concepts
What is Simple Interest and How to Calculate it?
Often we come across the term ‘interest rate’ when we have to borrow funds or invest money somewhere. An interest rate is the cost of financing that
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Financial Accounting Concepts
What is Compound Interest and How to Calculate It?
Compound interest involves earning interest not only on the initial amount of money or principal but also on any previously accumulated interest. This means tha
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Cost Accounting
What is Idle Time in Cost Accounting
In cost accounting, idle time is when a production resource is available but not used. Idle time can occur for several reasons, such as when a production line i
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Cost Accounting
What is Labour Turnover in Cost Accounting?
Labour turnover is a crucial metric in cost accounting that measures the rate at which employees leave a company and are replaced by new employees. A high rate
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Financial Accounting Concepts
What is Bin Card in Cost Accounting?
In cost accounting, bin cards are physical or electronic records used to track inventory levels in a stockroom, warehouse, or another storage facility. The card
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Financial Accounting Concepts
What is the Difference Between Cost and Financial Accounting?
Financial accounting and cost accounting are two different types of accounting that are used to track and report the financial performance of a business. While
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Cost Accounting
What is a Cost Centre in Costing? Purpose and Benefits
Cost centres refer to specific divisions and departments, that are responsible for managing their own expenses and can have costs assigned to them. In cost acco
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Cost Accounting
What is Abnormal Loss in Cost Accounting?
An abnormal loss is a cost accounting term that refers to a situation where the expected output of a production process is not achieved due to factors beyond th
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Financial Accounting Concepts
What is the Owner’s Capital in Accounting?
In accounting, the owner’s capital refers to the owners’ equity in the business. This can be calculated by subtracting the liabilities from the asse
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Financial Accounting Concepts
What is Working Capital? Why is it Necessary for Businesses?
Working capital refers to the difference between a company’s current assets and current liabilities showing the liquidity strength of a company. Here curr