
Introduction:
Cost: The amount incurred by the business in return for something acquired or services utilized. It is the value of expenses recorded for the equipment, supplies, services labor, products etc.
Requirement 1:
To define:
The meaning of out of pocket cost.
Requirement 2:
To define:
The meaning of opportunity cost.
Opportunity Costs: The cost by which the benefit or profit is foregone or not availed by the company for having taken up the other alternatives refers to an opportunity costs. The cost is the difference between the
Opportunity costs are computed as it plays very important role in determining the capital structure of the company.
Requirement 3:
To state:
The incorporation of opportunity costs in accounting records of the company.

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Chapter 25 Solutions
Fundamental Accounting Principles
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