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Q.

What is the Cost concept of Accounting?

Tags: cost concept of accounting
Asked by hitesh contractor, 28 Jan '08 11:26 am
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Answers (2)

1.

According to the cost concept of accounting, business transactions should be recorded at cost. The term cost means the sacrifice that one makes for purchase of any goods or services.
In addition, it states that cost should the basis of future transactions. It may be noted that depreciation too is provided on permanent assets on the basis of the cost. Thus the profit/loss made on the sale of the asset will be calculated on the basis of cost.
Answered by Anita Fernandes, 28 Jan '08 11:27 am

 
  
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2.

cost=price+overhead expenses
Answered by dhanendra kumar jain, 28 Jan '08 11:29 am

 
  
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