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

APPLICATION RATE is the quantity (mass, volume or thickness) of material applied per unit area.

AGI (Annual Gross Income) is annualized total income prior to exclusions and deductions.

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