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Direct Costing
An accounting method that only considers variable costs as product costs, while fixed costs are treated as period expenses.
Inventory Errors
Mistakes in accounting for inventory that can lead to inaccuracies in financial reporting, affecting cost of goods sold and net income.
LIFO Liquidation
An accounting method where the most recently produced items are recorded as sold last, potentially distorting the cost of goods sold and profitability during inflationary periods.
Bonus Contracts
Agreements that specify the conditions under which bonuses will be awarded to employees or partners, often tied to performance metrics.
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