extended normal costing

Definition

An accounting method that estimates production or service costs by using an approximate price times the number of inputs used to complete the output, instead of calculating each cost individually. For example, an accountant can multiply the number of man-hours needed to finish a set of bed frames times the average wage per worker.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
extended IRA extended period of indemnity