Important and Various Concepts of Cost

The concept of cost is differently used by different people depending upon the purpose for which they are used. An accountant is always interested in recording the actual cost for determining the business result. An economist is interested in making the use of those cost concepts which help in decision making. Thus, the concepts of cost in each are different. This is briefly explained below. Fixed and variable cost Fixed costs are those costs which remain fixed irrespective of the quantity of output produced by a business firm. Cost of…

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