Full Cost Accounting - Concepts

Concepts

Full cost accounting embodies several key concepts that distinguish it from standard accounting techniques. The following list highlights the basic tenets of FCA.

  1. Accounting for costs rather than outlays (see explanation below)
  2. Accounting for hidden costs and externalities
  3. Accounting for overhead and indirect costs
  4. Accounting for past and future outlays
  5. Accounting for costs according to lifecycle of the product

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