What Criteria Might Be Used to Differentiate Normal from Abnormal

question 218

Essay

What criteria might be used to differentiate normal from abnormal behaviour?

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Definitions:

Accrued Liabilities

Obligations that a company has incurred, for which it has not yet paid cash or issued payment during the accounting period.

Direct Method

An approach in cost accounting used to allocate service department costs directly to producing departments without distributing service costs between service departments.

Comparative Balance Sheet

A financial statement showing the financial position of a company at two different points in time side by side, to facilitate comparison.

Cost Of Goods Sold

Direct expenses related to the production of goods sold by a company, including materials and labor costs.