Applied cost

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Applied cost is a way to allocate costs across items produced or services performed within a line of business. It makes sure that overhead costs of the operation are accounted for. Applied cost is used as a method for tracking costs within cost accounting, which is a discipline of accounting which compares costs of production to output produced. Cost accounting is often part of a company's decision-making for many processes including budgeting and implementing cost controls. Cost accounting is different than other disciplines of accounting, such as managerial accounting and accrual accounting.

Source: https://www.investopedia.com/terms/a/appliedcost.asp

Sayed Farrukh Ahmed
Assistant Professor
Faculty of Business & Entrepreneurship