When expenses occurred without any cash flow then those expenses are termed as “Non Cash Expenses”. For example, asset depreciation; depreciation is an automated & fix expenses charged to be every month with a particular depreciate percentage but for this no cash outflow occurred at the particular period as it occurred at the time of asset purchase.
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prime costs are directly related to production costs. These costs are consumed during the production process. It includes the labor cost and raw material cost as raw material and labor are the prime inputs in manufacturing a product.
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Spoilage defines leftovers in a manufacturing process. These are also called as product wastes. These can be of two types avoidable and unavoidable.
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The hurdle rate is the minimal amount of rate of return an investor needed from his investment in a project. It also called as “minimum acceptable rate of return” (MAAR).
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Simple linear regression analysis is a statistical method used to find out the relationship between two variables i.e. one independent and one dependent. Regression analysis helps to analyze data and ultimately reach a conclusion,
Inventoriable costs are most associated with retail businesses. These costs are incurred during the process of obtaining a product and up to selling the product including holding cost, inventory transfer cost etc.
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High-low method commonly used to distinguish the variable & fixed price by analyzing some given data. This price or cost can be of a product, product line, geographical sales region, store etc. This method also used to ascertain a budget.
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An adjunct account is a valuation account in which recorded assets termed as bonds payable because its credit amount added to bonds payable account.
Variance analysis is simply a method to find out the difference between planned goals and actual or achieved goals. In terms of budgeting, it’s the difference between planned budget and actual budget spent or revenue achieved.
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Accounting standards define the rules & regulations of which accounting need to be done. Accounting standards form GAAP (Generally Accepted Accounting Principles).
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