CONSUMPTION SMOOTHING Definition

Bookmark and Share

CONSUMPTION SMOOTHING is aimed at protecting consumption patterns from the impact of shocks, and can take effect either before or after their occurrence. Post-shock responses include modifying consumption, raising income by mobilizing labor or selling assets, drawing on informal or formal sources of savings, or activating claims on informal insurance mechanisms.

Learn new Accounting Terms

NORMAL SPOILAGE consists of defective units that arise as part of regular operations. If normal spoilage arises from the requirements of a specific job, the cost of the spoiled units is charged to the job.

AAFI is Associated Accounting Firms International.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.