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Corporate Accounting
What is Capital Asset Pricing Model (CAPM)?
The Capital Asset Pricing Model (CAPM) is a financial model that helps investors understand the expected return on an investment relative to its risk. It was de
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Cost Accounting
Meaning and definition of target costing
The strategic cost management tool “target costing” incorporates customer-centric pricing principles instead of traditional firm-oriented pricing. A
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Accounting Regulatory Bodies
What are the Various Objectives and Functions of FASB?
The Financial Accounting Standard Board (FASB) was founded in 1973 as an independent, private-sector, not-for-profit organisation. It establishes accounting pri
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Financial Management
What is Momentum Analysis? When is it Used?
In finance, momentum analysis is a technique used to assess the speed and direction of a security’s price movement. It essentially tries to capture the id
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Cost Accounting
What are the Flaws in Traditional Costing System
A traditional costing system is an accounting approach used to assess the cost of producing products in order to generate a profit. The traditional allocation m
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Financial Accounting Concepts
What is Triple Bottom Line Reporting (TBLR)?
Triple Bottom Line Reporting (TBLR) is a new process that focuses on reporting, assessing and improving organisational performance for sustainability. This help
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Financial Management
How to Calculate Accounting Rate of Return [With Example]
When a company makes an investment it evaluates the financial feasibility of the investment. This process is called investment appraisal. Investment appraisal i
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Financial Accounting Concepts
What is a Suspense Account in Financial Accounting?
A suspense account is a general ledger account that consists of certain transactions that cannot be immediately categorised under correct accounts. The correctn
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Cost Accounting
Definition of Cost Object in Cost Accounting
A cost object is anything for which a separate measurement of costs is desired. It may be a project, a customer, an activity or a department. The concept of cos
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Corporate Accounting
What is the Profitability Index?
The Profitability Index is simply the profitability of an investment expressed as a percentage of the total return of the investment. The profitability index as