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Cost Accounting
What is a Cost Plus Contract?
Cost plus contract, which is also known as a cost-reimbursement contract, pays a contractor for all permitted expenses up to a predetermined limit plus an addit
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Financial Accounting Concepts
Write a note on accounting for payroll
Accounting for payroll is a fundamental aspect of managing human resources and ensuring accurate financial records. This procedure entails keeping track of all
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Financial Accounting Concepts
Bank Overdraft as a Source of Finance
Bank overdraft is a common source of finance used by businesses, individuals and even governments to meet their short-term cash flow needs. An overdraft is esse
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Cost Accounting
What is a Production Budget and Its Components?
A production budget is a financial plan that outlines the estimated costs associated with creating and delivering a product or service. The production budget se
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Cost Accounting
Difference between Spoilage and Defectives in Cost Accounting
In cost accounting, spoilage and defectives refer to different types of quality issues that arise during the production process. While both terms indicate a dev
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Cost Accounting
A Short Note on the LIFO Method of Inventory Valuation
The LIFO method, or last-in, first-out, is one of the most popular and widely used inventory valuation methods in cost accounting. Under this approach, the cost
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Cost Accounting
What is meant by annual holding cost in costing?
Annual Holding Cost or carrying cost refers to the total expense a business incurs to store and manage inventory over a year. It encompasses expenses like wareh
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Cost Accounting
What is Economic Order Quantity and Its Assumptions?
Economic Order Quantity (EOQ) is a formula used in inventory management to determine the optimal quantity of goods that should be ordered at one time. EOQ takes
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Corporate Accounting
Differences Between Equity and Preference Shares
Equity shares and preference shares are both types of stocks or shares that represent ownership in a company. However, they differ in terms of rights, dividend
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Financial Accounting Concepts
What Are the Differences between Accounting and Auditing
Accounting involves tracking, reporting, and analyzing financial transactions. It covers everything from preparing individual tax returns to preparing financial