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InterviewSolution
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Explain The Meaning Of Imputed Or Hypothetical Costs? |
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Answer» These types of costs are not recorded in the books of ACCOUNTS. These costs are not actually incurred but are considered while making a decision. For EXAMPLE, in accounting, interest and rent are RECOGNIZED only as expenditure when they are actually paid. But in costing they are charged on a NOTIONAL basis while ascertaining the COST of a product. These types of costs are not recorded in the books of accounts. These costs are not actually incurred but are considered while making a decision. For example, in accounting, interest and rent are recognized only as expenditure when they are actually paid. But in costing they are charged on a notional basis while ascertaining the cost of a product. |
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