HISTORICAL COST ACCOUNTING Definition

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HISTORICAL COST ACCOUNTING is an accounting principle requiring all financial statement items to be based on original cost. It is usually based upon the dollar amount originally exchanged in an arms-length transaction; an amount assumed to reflect the fair market value of an item at the transaction date.

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WORK CENTER, normally, is an individual production area or sub-process of an overall manufacturing process.

GROSS REVENUE is income (at invoice values) received for goods and services over some given period of time. See also GROSS SALES.

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