Definition: is the monetary value of a specific activity, which is recorded in the financial statement of an organization. If the said value is equivalent to or higher than the capitalization cap of the company, then it is recorded on the balance sheet; otherwise, it can be found in the income statement. Accounting costs are ordinarily added by using the accounts payable system but can also be registered through a journal entry or the payroll framework.
In a Sentence:
Our manager spent the last few days finding out and adjusting the accounting cost of all of our products.
To determine the accounting cost of our newest service, we had to include the distribution of fixed costs.
It turned out that our estimated accounting cost was way off the mark, as our accounting department failed to factor in the firm’s overhead costs.
Synonyms and related words: economic cost, accounting, financial statement, capitalization, balance sheet
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