Concepts
Full cost accounting embodies several key concepts that distinguish it from standard accounting techniques. The following list highlights the basic tenets of FCA.
- Accounting for costs rather than outlays (see explanation below)
- Accounting for hidden costs and externalities
- Accounting for overhead and indirect costs
- Accounting for past and future outlays
- Accounting for costs according to lifecycle of the product
Read more about this topic: Full Cost Accounting
Famous quotes containing the word concepts:
“It is impossible to dissociate language from science or science from language, because every natural science always involves three things: the sequence of phenomena on which the science is based; the abstract concepts which call these phenomena to mind; and the words in which the concepts are expressed. To call forth a concept, a word is needed; to portray a phenomenon, a concept is needed. All three mirror one and the same reality.”
—Antoine Lavoisier (1743–1794)
“Science is a dynamic undertaking directed to lowering the degree of the empiricism involved in solving problems; or, if you prefer, science is a process of fabricating a web of interconnected concepts and conceptual schemes arising from experiments and observations and fruitful of further experiments and observations.”
—James Conant (1893–1978)
“When you have broken the reality into concepts you never can reconstruct it in its wholeness.”
—William James (1842–1910)