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Extended cost

From Wikipedia, the free encyclopedia

In accounting, an extended cost is the unit cost multiplied by the number of those items that were purchased.

For example, four apples purchased at a unit cost of $1 have an extended cost of $4 (=$1 × 4 apples).[1]

By accurately tracking extended cost, a business can make more informed decisions about pricing, purchasing, and inventory management.

References

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  1. ^ "What Is Extended Normal Costing?". Investopedia. Retrieved 2014-09-18.