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Describe the Principles of cost accounting
Principles of cost accounting: The fundamental principles of costing are identical and are given below:
1. Cost is related to its cause
2. Cost is charged after it is incurred
3. Abnormal costs are excluded from costing
4. Past costs are not charged to future periods
5. The concept of conservation has no place in costing
6. Accounting for cost is based on double entry principal:
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full explaination with diagram
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Break even point or B.E.P. pricing method : Break even point is the volume of sales at which the total sale revenue of the product is equal to its total cost. In other words, it
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