ECONOMICS

Detailed explanation-1: -It defines as the practice of charging all costs, both variable and fixed, to operations, process or products. It also knows as traditional costing. Its ascertainment of costs after they have been incurring.

Detailed explanation-2: -cost of products and services may be accurately ascertained. Thus, the following are the main objectives of cost accounting: Ascertainment of the cost per unit of the different products that a business concern manufacturers. To correctly analyze the cost of both the process and operations.

Detailed explanation-3: -Sunk costs are historical costs that have already been incurred and will not make any difference in the current decisions by management.

Detailed explanation-4: -Some examples of such Ascertainment costs are : packing, carriage, insurance, freight outwards, etc. On this basis costs are divided into (i) direct costs, and (ii) indirect costs. Direct Costs: Direct costs refer to expenses which can be directly identified with a product, job or process.