The costs that are not incorporated in accounting records, but are recognized in different situations are classified as ___________?
Correct answer: D. imputed costs
- A. congruent costs
- B. transfer costs
- C. operating costs
- D. imputed costs
Explanation
Imputed costs are not recorded through ordinary accounting entries but are assigned for decision-making or performance measurement, such as a notional charge for owned capital. Operating and transfer costs are normally recognized costs arising from operations or internal transfers.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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