COST CONCEPT

The scope of the term cost is extremely broad and general. It is therefore, not easy to define or explain this term. Cost Accountanta, economist and others develop this concept of cost accounting to their needs. This, concept shouid therefore be studied in relation to its purposeand use. In the light of this time the term cost used with references to cost accounting are presented as under. Cost units are usually the unitsa of physical measurements like number, width, area, volume, length, time and value, The following example helps in understanding cost unit.