accounting Accounting, also known as accountancy, is the measurement, processing, and communication of financial and non financial information about economic entities such as businesses and corporations. Accounting, which has been called the "languag ...

, an extended cost is the

unit cost The unit cost is the price incurred by a company to produce, store and sell one unit of a particular product. Unit costs include all fixed costs and all variable costs Variable costs are costs that change as the quantity of the good or service ...

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

References

Management accounting {{Accounting-stub