Question

Which of the following type of cost concept is pertaining to income measurement?

Answer 1

Cost is the amount that must be paid to make use of any product or service. There are four cost concepts that relate to income measurements. They are as follows:

* Product costs and period costs

* Absorbed costs and unabsorbed costs

* Expired costs and unexpired costs

* Joint product costs and separable costs

Answer 2

There are four cost concepts which are related to income measurement. They are:

1. Product costs and Period costs

2. Absorbed costs and Unabsorbed costs

3. Expired costs and Unexpired costs

4. Joint product costs and Separable costs