Meaning of Cost
Cost is defined as the price paid for something.
• In cost accounting, Cost is the amount of resources given up in exchange for some goods or services.
Importance of Cost:
- It helps in preparation of business plan, without cost, a business plan is incomplete.
- It helps in competition.
- It helps in fixation of selling price.
- It helps in evaluation of performance.
- Ultimately, it helps in achievement in business goal.
