Class notes
CIMA BA2 Notes Chapter 2-Cost identification and classification
- Course
- Institution
CIMA BA2 Notes Chapter 2-Cost identification and classification
[Show more]
Seller
Follow
ellewoods2
Reviews received
Content preview
BA 2 - Fundamentals of Management AccountingCost identification and classification
Chapter two
, 1
BA 2 Cost identification and classification. Quantia Learning
, 2
Understanding costs help us produce information regarding:
• manufacturing cost of a product/service
• charging a selling price for our products or services
• the products and services we should supply
• the cost to run a particular department or function, etc.
Cost terms
Historical cost
Historical cost, normally used when we consider the purchase of an asset, is the original cost
paid for the asset at the time of acquisition. This applies to both non-current assets, such as
buildings or vehicles, or current assets such as inventory.
By their nature, historical costs are out of date and might not reflect the current value of the
asset to the organisation.
The economic value of an asset is the value the organisation derives from owning and using
the asset, depending on the current circumstances this can be higher or lower than the historical
cost.
BA 2 Cost identification and classification. Quantia Learning
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ellewoods2. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.09. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67474 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now