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Questions
State one difference between Historical costs and Predetermined costs.
Distinguish between historical cost and predetermined cost.
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Solution
Historical Costs: Historical or original costs are those costs that are ascertained after being incurred.
Predetermined Costs: Predetermined costs are those costs that are estimated or budgeted. These are computed in advance of production on the basis of past experience and other factors.
RELATED QUESTIONS
Abnormal costs are not recorded as part of production cost. Justify for or against.
Give one difference between money cost and real cost.
Distinguish between implicit costs and explicit costs.
Give one difference between normal cost and abnormal cost.
Give one difference between product cost and period cost.
Explain the following with an example:
Marginal cost.
Explain the following with an example:
opportunity cost.
Explain the following Concept:
Out of Pocket Cost
Explain the following:
Notional or imputed cost.
Explain the following:
Replacement cost
