In accounting, cost is defined as the cash amount (or the cash equivalent) given up for an asset. Cost contains all costs necessary to acquire an asset in place and ready for use. For example, the cost of an item in inventory also includes the item’s freight-in cost. The cost of land consist upon all costs to get the land ready for its use.
As we know the process of accounting is that of recording monetary transactions of a business in an organized and transparent form and to prepare financial statements related to assets and liabilities and help in proper functioning of the business. With the help of
Cost which is not related to production and is matched against revenues on a time period basis is called period cost, non manufacturing cost or non-inventoriable cost. Period cost includes marketing or selling cost and administrative cost. Marketing or Selling Cost. Marketing or selling
There are different measures of costs for different purposes. Therefore, costs are classified in a number of ways. An organization does not record costs by all possible classifications. However, in this modern age, computers have made it possible to record costs on multiple classification
Generally speaking by cost we mean total amount of money or other resources foregone or sacrificed to procure something or to achieve some objective. Word expense is also used to denote almost the same meaning. The difference between these two is that when benefit
Appraisal Cost Definition: Costs that are incurred to identify defective products before the products are shipped to customers.