PPT : Theory of Cost CA Foundation Notes | EduRev

Economics Class 12

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CA Foundation : PPT : Theory of Cost CA Foundation Notes | EduRev

 Page 1


Theory of Cost   
 
CPT Section C: General Economics 
Chapter 3 Unit 2 
Ms. Anita Sharma 
 
Page 2


Theory of Cost   
 
CPT Section C: General Economics 
Chapter 3 Unit 2 
Ms. Anita Sharma 
 
COST 
Page 3


Theory of Cost   
 
CPT Section C: General Economics 
Chapter 3 Unit 2 
Ms. Anita Sharma 
 
COST 
Cost Analysis Refers to the Study of 
Behavior of Cost in Relation to 
Production 
COST ANAL YSIS 
Page 4


Theory of Cost   
 
CPT Section C: General Economics 
Chapter 3 Unit 2 
Ms. Anita Sharma 
 
COST 
Cost Analysis Refers to the Study of 
Behavior of Cost in Relation to 
Production 
COST ANAL YSIS 
Various concepts of cost 
Accounting costs & economic costs 
Outlay costs & opportunity costs 
Direct costs & indirect costs 
Fixed & variable costs 
Page 5


Theory of Cost   
 
CPT Section C: General Economics 
Chapter 3 Unit 2 
Ms. Anita Sharma 
 
COST 
Cost Analysis Refers to the Study of 
Behavior of Cost in Relation to 
Production 
COST ANAL YSIS 
Various concepts of cost 
Accounting costs & economic costs 
Outlay costs & opportunity costs 
Direct costs & indirect costs 
Fixed & variable costs 
Accounting costs Economic costs 
? Accounting costs are 
also called as Explicit 
costs. 
 
? Economic cost include 
explicit cost and 
implicit cost. 
 
Accounting costs & economic costs 
? It refers to all payments 
made to suppliers. 
? It refers to all payments 
made to suppliers as 
well as imputed 
payments 
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