Examlex
In the diminishing-balance method, the rate of depreciation decreases each year.
CVP Analysis
Cost-Volume-Profit Analysis is a method for assessing how fluctuations in costs and sales volumes impact the operating and net income of a business.
Depreciation Expense
The allocated amount of the cost of a tangible fixed asset written off as an expense in the company's accounts over its useful life, reflecting the asset's consumption or loss of value.
Contribution Margin
The difference between sales revenue and variable costs, indicating how much contributes toward covering fixed expenses and generating profit.
Variable Selling Costs
Expenses that vary directly with the volume of products sold, such as commissions and shipping fees.
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