CONTRACT ALLOWANCE Definition

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CONTRACT ALLOWANCE is the limit set within an agreement as to what is the maximum allowed of any given item covered under contract, e.g., home construction with a builder may have allowances or "limits" set in your contract that tell you how much the price of your house "allows" for things such as floor coverings, countertops, and cabinets.

Learn new Accounting Terms

CASH FLOW STATEMENT see STATEMENT OF CASH FLOWS.

ECONOMIC LIFE is the time period over which an asset(s) may generate economic benefits.

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