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REVOCATION OF OFFER AND ACCEPTANCE The Indian Contract Act lays out the rules of revocation of an offer and acceptance in Section 5. It says the offer may be revoked anytime before the communication of the acceptance is complete against the proposer/offeror. Once the acceptance is communicated to the proposer, revocation of the offer is…
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HOW MANY TYPES OF GST IN INDIA GST is one indirect tax for the entire country. “GST is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.” There are around 160 countries in the world that have GST in place. GST is a destination based taxed where the tax is collected by the State where goods are consumed. India is going…
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SGST SGST is one of the tax components of GST in India. SGST refers to State Goods and Service Tax. It is one of the three categories under Goods and Service Tax (CGST, IGST and SGST) with a concept of one tax one nation. SGST falls under State Goods and Service Tax Act 2017. It…
UTGST FULL FORM UTGST full form is Union Territory Goods and Services Tax. It is the GST applicable on the goods and services supply that takes place in the union territories of India. Union Territory GST will be charged in addition to the Central GST (CGST). GST under supply of goods and services takes place…
DIFFERENCE BETWEEN STANDARD COSTING AND BUDGETARY CONTROL The difference between standard costing and budgetary control is as follows: STANDARD COSTING Standard costing is a cost accounting technique which compares the results of actual production with the basic standard, as anticipated, in terms of costs so as to determine the reasons for discrepancies between the anticipated…
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VARIANCE ANALYSIS Variance Analysis is the analysis of variances arising in a standard costing system into their constituent parts. It is the analysis and comparison of the factors which have caused the differences between predetermined standards and actual results, with a view to eliminating inefficiencies. ACCORDING TO I.C.M.A. “Variance analysis is the resolution into constituent…
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STANDARD COSTING Standard costing is a cost accounting technique which compares the results of actual production with the basic standard, as anticipated, in terms of costs so as to determine the reasons for discrepancies between the anticipated and actual costs. ACCORDING TO W W BIGG “Standard costing discloses the cost deviations from standard and classifies…
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EXPLICIT VS IMPLICIT COSTS The difference between Explicit vs Implicit costs are as follows: EXPLICIT COSTS Explicit costs refer to all those expenses made by a firm to buy goods directly. They include, payments for raw material, taxes and depreciation charges, transportation, power, high fuel, advertising and so on. According to Leftwitch, “Explicit costs are…
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RELATIONSHIP BETWEEN AC AND MC AVERAGE COST Average total cost is the sum of the average fixed cost and average variable cost. Alternatively, ATC is computed by dividing total cost by the number of units of output. Therefore, ATC or AC = AFC + AVC =TC/Q Average cost is also known as unit cost, as…
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MODERN THEORY OF COST Modern economists including Stigler, Andrews and Friedman have questioned the validity of U-shaped cost curves both theoretical as well as on empirical grounds. Also the long run costs in modern theory are not U- shaped but L- shaped. The Modern theory suggests the existence of ‘built- in- reserve capacity ‘which imparts…
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