SENSITIVE ASSETS Definition

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SENSITIVE ASSETS are those assets that can be affected by uncontrollable external factors. There are interest rate sensitive assets (assets yielding cash-flows at some fixed points in the future) and theft-sensitive assets (inventory for example).

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COST ACCOUNTING is a managerial accounting activity designed to help managers identify, measure, and control operating costs.

PRE-OPERATING COSTS are costs that are deferred until the related assets are ready for revenue service at which time the costs are charged to operations.

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