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root cause

(Dictionary)

Author:
Harold Averkamp, CPA, MBA

Definition

The underlying true cause of a cost occurring. In other words, the root cause is more than a
mere correlation between an event and a cost. There is a real cause and effect relationship.

Dictionary

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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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