Standard predetermined overhead rate is an overhead rate determined by dividing budgeted overhead costs by an expected standard activity index.
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- Straight-line method of amortization
Straight-line method of amortization is a method of amortizing bond discount or bond premium that results in allocating the same amount to interest expense in each interest period.
- Carrying (or book) value method
Carrying or book value method is the method of recording the bond conversion that the company does not consider the current market price...
- Standard costs
Standard costs are predetermined unit costs which companies use as measures of performance.
- Double entry system
Double entry system refers to a system that records in appropriate accounts the dual effect of each transaction. This system provides a logical method for recording transactions.
- Market interest rate
Market interest rate is the rate investors demand for loaning funds to the corporation.
- Owner’s equity statement
Owner’s equity statement is a financial statement that summarizes the changes in owner’s equity for a specific period of time. The time period is the same as that covered...
- Off-balance-sheet financing
The practice of keeping leased assets and lease liabilities off the balance sheet is referred to as off-balance-sheet financing.