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Difference between accounting cost and economic cost in tabular form
Accounting cost example.
Costing definition
What is Costing?
Costing is any system for assigning costs to an element of a business. Costing is typically used to develop costs for customers, distribution channels, employees, geographic regions, products, product lines, processes, subsidiaries, and entire companies.
Costing may involve only the assignment of variable costs, which are those costs that vary with some form of activity (such as sales or the number of employees).
This type of costing is called direct costing.
Five difference between accounting cost and economic costFor example, the cost of materials varies with the number of units produced, and so is a variable cost.
Costing can also include the assignment of fixed costs, which are those costs that stay the same, irrespective of the level of activity.
This type of costing is called absorption costing. Examples of fixed costs are rent, insurance, and property taxes.
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