Explanation

• There are four main procedures followed for the best competitive bidding.
• These ensure fairness, transparency, and cost-effectiveness in procurement and contract awarding.

The Four Procedures:

1. Open Tendering – Anyone can bid; most competitive.
2. Selective Tendering – Only pre-qualified bidders are invited.
3. Negotiated Tendering – Direct negotiation with a chosen supplier.
4. Request for Quotations (RFQ) – Used for smaller contracts with multiple quotes.

Explanation

Operating expenses include costs incurred in the daily running of a business, such as rent, utilities, and salaries.

These expenses are essential for maintaining operations but do not include costs related to production or financing.

Explanation

Explanation

Explanation

Net sales are operating revenues earned by a company for selling its products or rendering its services.

Explanation

Explanation

Explanation

Margin of safety is computed as Actual sales - break even sales 

The margin of safety formula is equal to current sales minus the break even point, divided by current sales.

Explanation

The matching principle of accounting principles requires businesses to record depreciation.

 The matching principle states that the expense should be matched with the income generated during the period

Explanation