14 July 2015
the expenses which are not incurred but having NOTIONAL value are said to be notional expenses. Income tax does not recognise any such expenses unless otherwise specifically provided in any of the sections.....e.g. depreciation.
14 July 2015
Notional means imaginary, speculative or conceptual i.e. something that has no actual existence and is mere imagination.
Same way a notional cost is an imaginary cost which is sometimes included in the cost units and cost centers to make costing estimates more realistic or simply more challenging especially when the performance of cost unit and cost center is in question in comparison with such other competitors which are not enjoying the same level of benefits.
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