Cost Concept Relating to Income Measurement Homework Help
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What is Cost Concept?
A cost concept is a detailed planning and execution of schemes that lead to the optimization of finance and revenue ina company. These cost concepts help the management to decide in the perspective of poised economic growth of the firm. There are several cost concepts derived for various management systems and here in this Cost Concept Relating to Income Measurement homework Help article we discuss it from the perspective of income measurement.
How Cost Concept is Helpful in Measurement of Income?
From a taxation point of view, the various attributes of an income can be classified. And it is ultimately the main objective of a cost concept. The amount of income determination faces two major problem among people. They are
• The meaning of income in broad terms
• Its measurement methodologies
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Types of Income Measurements
In this article for Cost Concept Relating to Income Measurement homework Help, the following types of income
measurements are classified.
1. Product and period cost
2. Absorbed and unabsorbed cost
3. Expired and unexpired cost
The amount of goods and service defined by a company that eventually gets absorbed by the entity provides income, as per our Cost Concept Relating to Income Measurement homework Help article writers. One major point to consider is to avoid any reduction in capital.
Income = capital at the end – initial capital of firm
Income = (consumption amount of goods/services it provides) + or – (change in capital)
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