Learn English with English, baby!

Join for FREE!


English Forums

Use our English forums to learn English. The message boards are great for English questions and English answers. The more you contribute, the more all members can practice English!


English Talk

what means "frozen cost"?




Hey guys, need a hand here.

Any professional knows the meaning "frozen cost"?
In any fields, including Finance, industrial, or whatever aspects you have idea.

thanks for your help in advance.

09:28 AM Sep 10 2006 |

The iTEP® test

  • Schedule an iTEP® test and take the official English Practice Test.

    Take Now >

irfan sheikh


Suppose you have a company that makes pens. YOu buy each pen for $1.00. Then you color it and sell it for $1.50. $1.00 that you spend to buy the pen is your frozen cost that you set at the begining of your fiscal year. This cost may change during the year, but you go by the 'frozen' cost in your accounting books. The cost that keeps changing during the year is 'current cost'. Later you adjust your books accordingly.

04:26 PM May 24 2007 |