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What is the impact of cost-reimbursement contracts that require allocation of support-department costs? How do managers avoid disputes associated with these costs?
Pledging Receivables
Borrowing money using receivables as collateral.
Effective Cost
The total cost of a financing option, including all fees and interest, adjusted for any discounts or premiums, providing a true comparison of costs.
Annual Rate
Annual rate often refers to the interest rate for a period of one year, but can also apply to any annualized financial metric intended to allow comparison over a year's period.
Implied Annual Cost
The total cost associated with financing or an investment, expressed on a yearly basis, often calculated through the analysis of implied rates or costs.
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