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Cost Accounting
What is a sunk cost in accounting
A sunk cost is that which has been incurred or committed in the past and is, therefore, irrelevant to the decision-making purpose because the decision-maker no
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Cost Accounting
Differences between standard cost and standard costing
The standard cost is the amount anticipated to be paid for materials or labour. The standard quantity is the estimated amount of materials or labour used. It is
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Cost Accounting
Definition of Cost Object in Cost Accounting
Cost Object – Definition A cost object is anything for which a separate measurement of costs is desired. In other words, a cost object is a service unit f
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Cost Accounting
What is Contribution Margin? Meaning and Calculation
The contribution margin is the amount by which the selling price of a product exceeds its total variable unit costs. This difference between the selling price a
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Cost Accounting
What Are Perpetual and Periodic Stock Systems?
A trade or manufacturing company’s net stock position and the cost of stock issued over the year are often required to calculate the stock consumption and
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Financial Accounting Concepts
What is the Ledger and its purpose in Bookkeeping?
Ledger Posting The ledger is the principal book of the accounting system. After we have finished part of recording the transactions in the Journal, the next par
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Financial Accounting Concepts
What is Accrual Concept in the Financial Accounting?
The accrual concept is an accounting method used to record revenue and expenses when they occur rather than when they are paid. This means that revenues and exp
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Cost Accounting
What is the Budget Period in Accounting?
A budget is a quantitative future plan that helps an organisation coordinate its actions. Large organisations all have a budget. Numerous companies produce deta
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Financial Management
Markowitz Model of Risk-Return Optimization | Assumptions
Markowitz model is an optimal financial investment strategy to maximize the expected return for an investor while maintaining a desired level of risk. The Marko
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Accounting Regulatory Bodies
What are the Various Functions of IASB?
The International Accounting Standards Board (IASB) is a not-for-profit organization that develops and sets accounting standards to be followed by companies in
