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regression analysis method of cost estimationit includes estimating the cost function by utilizing past data or the dependent and the independent
engineering method of cost estimationthis method is based on a detailed study of each operation whereas careful requirement is made for materials
account analysis method of cost estimationby utilizing account analysis the accountant classifies and examines each ledger account like variable
example of high - low method of cost estimationbased on the performance such you have been provided along with the given information regarding abc
high - low method of cost estimationnow cost estimation is based upon the relationship between past level and past cost of activity variable cost is
methods of cost estimationwe will consider given cost estimation methods commonly employed namely asa high low activity methodb engineering analysisc
purpose of cost estimationin estimating it assists the future expenditure as cost prediction like the expenditure will depend upon the cost of the
cost estimation cost estimation may be defined with a study that attempts to predict among costs and the activity level or cost driver that
functional classification of costsbeneath this classification costs are classified according to the function they execute in an organization
controllable and non controllable costscontrollable costs can be influenced on the level of authority at that they are being analyzed when
direct and indirect costsrecall such direct costs are costs which can be traced particularly to the end product of the production procedure while
behavioral classification of costsdefinitioncost behavior refers to the change in costs as increase or may decrease like the output level changes
elements of non - manufacturing costsnon-manufacturing costs are costs incurred via all activities such support the production of services and goods
labour costs and overhead costslabour costslabour costs can be indirect or direct labour costs direct labour cost refers to wages paid to workers who
material costsmaterial refers to each physical input into the production procedure they involve the giving as raw material refers to bought in
elements of manufacturing costsmanufacturing costs are the costs incurred to create a product keep in mind for a product that refers to both services
importance of cost classificationanalysis of cost behaviour is significant to all organizations for effective management it is since many
cost classification basescosts can be classified on either more or one of the given bases asa are the costs dependent on the level of output as like
cost classifications and estimationcost classification may be defined like the arrangement of cost items in a logical sequence having concern to
features of effective cost center frameworkduring the establishing cost centers an organization must consider the given points asa clear definition
manufacturing concern to organizationthere are three manufacturing centres as making packing and finishing these are supported through five
accounting records - nature and purpose of cost accountingthe quantitative information employed in the management and cost accounting systems can be
quantitative and qualitative information in accounting systems the availability of information is the lifeblood of any type of management and cost
budgetary planning and control - accounting techniquesa budget is a plan of action expressed in monetary terms therefore it is a quantified
variance analysis and standard costingstandard costing is defined with cima like a technique that uses standards for revenues and costs for the