imputed cost

imputed cost definition - business

imputed cost

  1. In accounting, the expense of unreimbursed goods and services provided by one entity to another entity.
  2. An expense that is borne indirectly. For example, paying cash for a car avoids the direct cost of interest payments to a lender, but it entails the imputed cost of lost income from having funds invested in the car rather than a more productive asset.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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This is a question. A entity is engaged in consulting and cafeteria business. As such several of their officers and some employees are extended free meal and snacks. Can these be considered as imputed cost?. Thanks

Posted by narsing 70 days ago.

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