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These interest terms can, conversely, represent an advantage to sellers, who may be able to charge more for products where the cost is spread over time and may also profit from ongoing interest payments. Credit Sales refer to the revenue earned by a company from its products or services, where the customer paid using credit…
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This will save your accounting staff the hassle of having to treat it as an asset and then track and record its expenses. Common expenses include payments to suppliers, employee wages, factory leases, and equipment depreciation. Variable costs are a direct input in the calculation of contribution margin, the amount of proceeds a company collects after…
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