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In contemporary cost accounting, the notion of recording historical costs was taken further, by assigning the company's fixed costs over a specified period of time to the items formed during that period, and recording the outcome as the entire cost of production. This allowed the entire cost of products that were not sold in the era they were produced to be recorded in inventory using various complex accounting methods, which was along with the principles of GAAP (Generally Accepted Accounting Principles). It also fundamentally enabled managers to avoid the fixed costs, and look at the outcomes of each period in relation to the "standard cost" for any particular product.
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