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Home Dictionary A Absorption Costing Absorptive cost differs from variable cost because it allocates a fixed overhead to each unit of product produced during a period. Absorbing cost allocates fixed overhead to a product, whether or not it was sold during the period. This type of calculation method means that ending inventory includes an additional value that is carried forward as an asset on the balance sheet. Because more expenses are included in ending inventory, expenses on the income statement are lower when using the absorption method. Corporate Finance
September 20, 2022 Corporate finance is concerned with how businesses finance their activities in order to maximize profits and minimize costs. Next-In, First-Out (NIFO)
September 20, 2022 Next In, First Out (NIFO) is a valuation method in which the value of an item is based on its replacement cost, rather than its original cost. 1%/10 Net 30
September 20, 2022 Deal 1%/10 net 30 is when a 1% discount is offered on services or products if paid within 10 days of the 30 day payment agreement. Accelerated Depreciation
September 20, 2022 Accelerated depreciation is any depreciation method that allows you to recognize higher depreciation costs in previous years. Accountability
September 20, 2022 Accountability is the acceptance of responsibility for one’s actions. This implies a willingness to be transparent, allowing others to observe and evaluate their work.