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:
“When you have broken the reality into concepts you never can reconstruct it in its wholeness.”
—William James (1842–1910)
“Once one is caught up into the material world not one person in ten thousand finds the time to form literary taste, to examine the validity of philosophic concepts for himself, or to form what, for lack of a better phrase, I might call the wise and tragic sense of life.”
—F. Scott Fitzgerald (1896–1940)
“During our twenties...we act toward the new adulthood the way sociologists tell us new waves of immigrants acted on becoming Americans: we adopt the host culture’s values in an exaggerated and rigid fashion until we can rethink them and make them our own. Our idea of what adults are and what we’re supposed to be is composed of outdated childhood concepts brought forward.”
—Roger Gould (20th century)