Imputed costs are costs recognized in particular situations that are NOT usually recognized by accrual accounting procedures.

Question

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Imputed costs are usually not recognized by accrual accounting procedures because they are not actual cash payments or purchases, but rather expenses that are implied or estimated. Examples may include the opportunity cost of using an owned asset instead of renting it out, or the cost of self-insurance instead of purchasing insurance from an external provider.

Imputed Costs Are Costs Recognized in Particular Situations That Are