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Full cost accounting

Full cost accounting Definition

Full cost accounting (FCA) generally refers to the process of collecting and presenting information (costs as well as advantages) for each proposed alternative when a decision is necessary. Costs and advantages may be considered in terms of environmental, economical and social impacts. Full cost accounting information may be used by decision-makers.

Full-cost accounting is sometimes used in a variety of settings, and may be a new way of thinking about infrastructure management and finance for some communities. For others, it can be simply an extension of current management practices. Understanding the benefits of FCA can help ease its implementation.








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