Cost accounting - COST ACCOUNTING ASHIMA AGARWAL COST A...

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COST ACCOUNTING ASHIMA AGARWAL
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COST A cost may be defined as the sacrifice made, usually measured by the resources given up to achieve a particular purpose. An Expense is defined as the cost incurred when an asset is used up or sold for the purpose of generating revenue.
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PRODUCT COSTS V/S PERIOD COSTS A product cost is a cost assigned to goods that were either purchased or manufactured for resale. In the period of sale, the product costs are recognized as an expense called cost of goods sold. Period costs are the costs that are identified with a period of time in which they are incurred rather than with the units purchased or produced goods. All R&D, Administrative and Selling & Distribution costs are period costs.
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VARIABLE COSTS V/S FIXED COSTS A variable cost changes in total in direct proportion to a change in the level of activity. A fixed cost remains unchanged in total as the level of activity varies.
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DIRECT COSTS V/S INDIRECT COSTS A cost that can be traced to a particular
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This note was uploaded on 07/29/2010 for the course ACCOUNTS 2332 taught by Professor Piyush during the Fall '10 term at Amity University.

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Cost accounting - COST ACCOUNTING ASHIMA AGARWAL COST A...

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