COMM 112 Chapter Notes - Chapter 2: Indirect Costs, Lululemon Athletica, Sheet Pan

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If an asset is traded for another asset, then the cost is the value of the asset you lost. The among of cash or cash equivalent sacrificed to produce revenue. Cost = dollar measure of the resources used to achieve benefit. As costs are used up in the production of revenues, they are said to expire: expired costs = expenses. Price = the revenue per unit: you may think cost and price are the same, but they are not! Instead, the revenue and price are the same. Is the way that costs are measure and recorded. When you get a phone bill, the bookkeeper records an addition to the phone expense and addition to accounts payable. Therefore, cost is accumulated: this lets us tell at the end of the year how much the total cost has turned out to be.

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