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what is production costit begins with the supplying of materials labour and services and ends with the primary packing of the producttherefore it
describe committed fixed costs committed fixed costs are those fixed costs that arise from the possession of1 plant building and equipment for
explain variable cost and fixed costvariable costs costs that vary almost in the direct proportion to the volume of production are known as variable
discretionary fixed costs and semi variable costsdiscretionary fixed costs are those which are incurred as a result of management discretion these
explain the cost according to controllabilitycontrollable cost this is a cost which can be inclined by the action of a specified member of an
determine the cost according to normalityaccording to normality under this category cost may be categorized as followsnormal cost it is the cost
explain product costproduct costs are those costs which are associated with and directly identifiable with the product in other words which are
what is period costperiod costs are those costs which are reported as expanses of the period in question these are cost which are not assigned to the
explain out of pocket costa cost which will have to be paid to outsides as against cross such as depreciation which do not require any cash payment
replacement costit is the cost of replacing a material or asset by purchase from the current marketif an x material was originally purchased rs 250
determine the inputted cost it is hypothetical cost required to be considered to make costs comparable it is the owner of the factory charges rent of
state the opportunity costthe net selling price rental value or transfer value which could be obtained at a point in time if a particular asset or
what is sunk cost a cost has been incurred in the past or sunk in the past and is not relevant to the particular decision making is a sunk costif it
explain the shut down cost a cost which will be still be required to be incurred even though a plant is closed or shut down for a temporary
difference between direct labour and indirect labourdirect labour-labour which plays an active and direct part in the production of a particular
elements of cost1 material the substance from which the product is made is known as material it may be in a raw or a manufactured state it can be
state overhead expenses it is to be noted that the term overheard has a wider meaning than the term indirect expanses overheads include the cost of
what are direct expanses these are expanses which can be directly conveniently and wholly allocated to a specific cost centres or cost units examples
explain indirect expansesthese are expanses which cant be directly conveniently and wholly allocated to a specific cost centres or cost units
explain about office and administrative expensesthese expenses are not related to factory but they pertain to the management and administration of
what are selling and distribution expensesselling and distribution expenses incurred for the marketing of a commodity for securing orders for the
explain about cost centremeaning amp definition cost centre is defined as a location person or item of equipment or group of them in respect which
explain the main purpose of cost centrethe main purpose of cost centre is two fields1 recovery of cost costs are collected classified into two field
determine the tyoes of cost centrecost centre can be of two kinds1 impersonal cost centre consisting of a location or item of equipment or group of
what is cost unitwhile the cost centres assists in ascertaining costs by location person equipment operation or process cost unit is a unit of