2
Basic Concepts of Cost
CHAPTER OUTLINE
LEARNING OBJECTIVES
After reading this chapter, you will be able to understand:
Cost concepts
Classification of costs
Types of costing
Methods of costing
Elements of cost
2.1 INTRODUCTION
Cost accounting is concerned with cost and is therefore necessary to understand the meaning of the term ‘cost’ in a proper perspective. In general, cost means the amount of expenditure (actual or notional) incurred on, or attributable to, a given thing or activity. However, the term cost cannot be defined ...
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