chapter  5
38 Pages

COST CONCEPTS, COST BEHAVIOR, AND COST ACCOUNTING

In financial accounting, the term "cost" is defined as a measurement, in monetary terms, of the amount of resources used for some purpose. In managerial accounting, the term "cost" is used in many different ways. That is, there are different types of costs used for different purposes. Some costs are useful and required for inventory valuation and income determination. Some costs are useful for planning, budgeting, and cost control. Still others are useful for making short-term and long-term decisions.