Page 13 - MAC4861_2 Costing Class Slides Part 1

TEST 3 - COSTING

Cost terms and concepts

Cost

• The cost of any item, whether production or

service driven, is determined by a quantifiable

measurement and a value measurement.

Cost classification

• Classification is linked to the intended use of the

cost information: i.e. for inventory valuation,

planning, decision-making or control purposes.

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