E Learnings

  A static budget is  a budget that uses predicted amounts for a given period prior to the period beginning . The unique aspect of a static budget is that it does not change regardless of deviations in revenue and expenses.

 VAT is a tax that is levied on services and goods and is paid to the government by producers although the actual tax is levied from the end-user or consumers who purchase the services and goods. This is important for GDP.

 An indirect tax (such as sales tax, per unit tax, value added tax (VAT), or goods and services tax (GST), excise, consumption tax, tariff) is a tax that is levied upon goods and services before they reach the customer who ultimately pays the indirect tax as a part of market price of the good or service purchased. Alternatively, if the entity who pays taxes to the tax collecting authority does not suffer a corresponding reduction in income, i.e., impact and tax incidence are not on the same entity meaning that tax can be shifted or passed on, then the tax is indirect.

 Goods and Services Tax (GST) is an indirect tax (or consumption tax) used in India on the supply of goods and services. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes. Multi-staged as it is, the GST is imposed at every step in the production process, but is meant to be refunded to all parties in the various stages of production other than the final consumer and as a destination-based tax, it is collected from point of consumption and not point of origin like previous taxes.

  A sales discount is  a reduced price offered by a business on a product or service . Learn how to include discounts on invoices. A sales discount, also commonly known as just a 'discount' provides customers of a business with a reduced rate on one or more of the products or services being offered.

  A cost reconciliation statement is  a statement reconciling the profits or losses shown by cost accounts and financial accounts . It is a statement wherein the causes responsible for the difference in net profit or loss between cost and financial accounts are established and suitable adjustments are made to remove them.

  To calculate cost per equivalent unit by  taking the total costs (both beginning work in process and costs added this period) and divide by the total equivalent units . In this example, beginning work in process is zero.