Imputed cost
This query is : Resolved
25 December 2013
What is an Imputed cost? Explain with Example!!
25 December 2013
Imputed / Notional cost - CIMA defines notional cost as "the value of benefits where no actual cost is incurred". Thus, imputed cost is that cost which does not involve any cash outlay. Though it is a hypothetical cost, it is relevant for decision making. Interest on capital, the payment for which is not actually made, is an example of imputed cost.
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