The same cost concept used for external and internal reporting purposes.

Question

Quizplus · Accepted Answer

The cost concept used for internal reporting may be different from that used for external reporting, as internal cost concepts may be more detailed and specific to meet the information needs of management. External reporting is more standardized and follows generally accepted accounting principles (GAAP) or international financial reporting standards (IFRS).

The Same Cost Concept Used for External and Internal Reporting