GENERAL AVERAGE Definition

GENERAL AVERAGE is the provision in maritime law where all shippers on a given voyage would reimburse the ship line in the event of vessel sinking or catastrophic damage. It also provides for the reimbursement to those shippers whose cargo was thrown overboard in order to save the vessel.

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CURRENT COST ACCOUNTING is a system of accounting which adjusts for changing pricing.

RULE OF THUMB is a rough and useful principle or method, based on experience rather than precisely accurate measures.

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