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Category: Managerial Accounting

link to What is a Cost Object in Accounting?

What is a Cost Object in Accounting?

In Managerial or Cost Accounting, costs are first identified and then assigned to the part of the business that incurs the cost, the part of the business that makes those costs necessary. Cost...

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link to What is a Cost in Accounting?

What is a Cost in Accounting?

A cost is what you give up to get something else. At the grocery store, you give up cash to get groceries. When deciding to go to college, you give up time and money to get a degree or the benefits...

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link to What is Managerial Accounting?

What is Managerial Accounting?

Managerial Accounting is a specific branch of accounting designed to support business managers and owners by providing data to help the company with strategic planning, measuring company performance,...

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link to What is Net Income?

What is Net Income?

In a business, Net Income is the difference between Revenue and Expenses. When the difference is positive (revenues are greater than expenses), the business has a profit or Net Income. When the...

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link to What is a Chart of Accounts?

What is a Chart of Accounts?

A Chart of Accounts is a listing of the accounts a company uses to categorize transactions. The accounts are the buckets of information a business needs to track. A Chart of Accounts is specific to...

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link to What is Gross Profit?

What is Gross Profit?

When a business buys products for resale or buys raw materials to transform into products, gross profit is an important number to know. What is Gross Profit? Gross Profit is the difference...

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