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Technical terms

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Absorption rates

The predetermined rate at which overhead costs are charged to cost objects (products, services, or customers).

Thu, 17 May, 2018 at 10:37 AM
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Accounting equation

The accounting equation displays that all assets are either financed by borrowing money or paying with the money of the company's shareholders. Thus, t...

Thu, 17 May, 2018 at 10:37 AM
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Accruals basis of accounting

Expenses are matched with the related revenues and/or are reported when the expense occurs, not when the cash is paid. The result of accrual accounting is an...

Thu, 17 May, 2018 at 10:39 AM
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Activity-based costing

Identifies the activities that a firm performs and then assigns indirect costs to products.

Thu, 17 May, 2018 at 10:39 AM
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Actual cost

Actual cost is the actual expenditure made to buy an asset, which includes the supplier-invoiced expense, plus the costs to deliver, set up, and test the as...

Thu, 17 May, 2018 at 10:39 AM
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Adverse variance

A variance occurs when there is a difference between actual and budgeted figures. Adverse/unfavourable is when it is worse than expected.

Thu, 17 May, 2018 at 10:40 AM
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Alternative investment

An asset that is not one of the conventional investment types, such as stocks, bonds and cash. Most alternative investment assets are held by institutional i...

Thu, 17 May, 2018 at 10:40 AM
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Amortisation

The process of allocating the cost of an intangible asset over a period of time. It also refers to the repayment of loan principal over time.

Thu, 17 May, 2018 at 10:41 AM
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Analysed petty cash book

Used to record actual income and expenditure of the household. In the analysed cash book there are two columns on each side, one for cash and one for bank.

Thu, 17 May, 2018 at 10:41 AM
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Asset turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue or sales income to the company. Companies w...

Thu, 17 May, 2018 at 10:41 AM