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International arbitrage is the practice of profiting from price discrepancies between identical or similar financial instruments traded in different international markets. It exploits temporary inefficiencies in the global financial system. Here's a breakdown ...

Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII) are two key ways foreign capital flows into a country's economy. While both involve foreign investment, they differ significantly in their nature, impact, and objectives. Here's a break...

Here's an explanation of direct and indirect material costs, material purchase procedures, and inventory control techniques: Direct Material Cost Direct material costs are the costs of raw materials and components that can be directly traced to the production ...

Purpose of Issuing Materials Facilitate Production: Provides the necessary inputs for manufacturing operations as per the production schedule and bill of materials. Cost Control: Enables tracking of material consumption, allowing for accurate costing of pro...

Direct and Indirect Labor Cost Direct labor costs are the wages paid to employees who are directly involved in the production of a good or service. Their efforts can be directly traced to the creation of a specific product. 🧑‍🏭 Examples: Wages of assembly li...

Features of Overhead Costing Overhead costs have several distinct features that differentiate them from direct costs: Indirect Nature: Overheads cannot be directly or economically traced to a specific product, job, or service. They are general expenses incur...

1. Traditional Allocation Methods (Plantwide and Departmental Rates) 🏭 These methods rely on a single predetermined overhead rate or departmental rates based on a single activity base. a. Plantwide Overhead Rate This is the simplest method where all manufactur...

Primary Distribution of Overheads 🧾 Primary distribution is the initial process of allocating and apportioning all overhead costs (both manufacturing and non-manufacturing, if applicable to the factory) to all departments within the factory, whether they are p...

Overhead costing involves a series of steps to ensure that indirect costs are accurately assigned to products or services. Two crucial steps in this process are apportionment and absorption. Apportionment of Overheads 🤝 Apportionment (also known as primary di...