Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed


Financial statements and cost terminology



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Financial statements and cost terminology
The basic concepts of assigning costs to cost objects (and using this information for planning and control) apply to service, merchandising and manufacturing companies. Students find it easier to grasp the basic concepts by starting with service companies, which are the simplest as they have no stocks. Merchandisers add the complications of purchases and stocks. The final step is manufacturers, which are more difficult due to the complexities of cost of good manufactured (CGM), and the three types of stock.

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