Question

Write a note on items appearing in cost accounting
only (with eg)

Answer 1

Answer:

Hence, only item which can appear in cost accounts but not in financial accounts is a notional charge, such as,

(i) interest on capital, which is not paid but included in cost accounts to show the notional cost of employing capital,

(ii) rent i.e. charging a notional rent of premises owned by the proprietor.