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Cost Accounting
What is Marginal Cost Equation | Practical Application
The marginal cost of an additional unit of output is often referred to as the “prime cost plus variable overhead.” It encompasses all costs that var
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Corporate Accounting
What is Share Capital and How Does it Work?
A share is a unit of ownership in a company that represents a portion of that company’s total value and assets. Each share has a nominal or par value. A f
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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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Forensic Accounting
Why forensic accountants are in high demand?
The practice of forensic accounting involves the analysis of accounting information that has been generated by or obtained from the entity under investigation.
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Corporate Accounting
Internal rate of return method for investment appraisal
The Internal Rate of Return (IRR) is one of the most common methods for investment appraisal. IRR is also known as the Internal Capitalization Rate. It is one o
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Cost Accounting
What is Activity-Based Costing (ABC)?
Activity-based costing is a method that assigns costs to the different activities involved in making a product to allocate a company’s funds equitabl
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Financial Accounting Concepts
Differences Between Accounting Concepts and Conventions
Although to a layman, both accounting concepts and accounting conventions may sound similar, there are some fundamental differences between them. There are a fe
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Financial Accounting Concepts
What is the Going Concern Concept?
The going concern concept is a principle that assumes a business entity will continue operating for the foreseeable future, typically in the next 12 months. Thi
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Financial Management
The Payback Period Method of Investment Appraisal
The payback period is the amount of time it takes to recover the investment’s initial outlay. In other words, it is the amount of time it takes for the pr
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Financial Management
Net Present Value (NPV) Calculation With Example
The NPV method is based on the time value of money principle, which states that money is worth more today than it will be in the future. This is because money c