Cost classification bases, Cost Accounting

Assignment Help:

Cost Classification Bases

Costs can be classified on either more or one of the given bases as:

a) Are the costs dependent on the level of output as like variable or are the costs the similar irrespective of the level of output as like fixed?

b) Have the costs already been incurred as like sunk or are they going to be incurred in the future depending on what we choose as like incremental?

c) Are they already incurred as like historical/sunk or are the costs because of a benefit foregone for not taking a specific option as opportunity cost?

d) Are we in a place to decide not to incur the costs as like ignorable or are we bound to incur them via authorities we are subject to as like higher the government and managers as unavoidable?

e) Are the costs really incurred as like actual or are they the expected like per the expenditure guidelines set through the management as standard?

f) Can we be capable to control the costs, as an example, via varying the level of output or by creation suitable decisions as controllable costs, or are the costs beyond us since they are fixed or the decisions are made through higher authorities as uncontrollable?

g) Can we trace the exact costs incurred to the final product as direct costs or can we not, may be simply estimate that costs as indirect costs?

h) What is the function to make the costs to be incurred in the organization, is it administration, production, or selling and distribution?

i) Is the cost incurred for manufacturing purpose as production cost or for manufacturing support purpose as non-manufacturing cost?

j) How does the cost behave along with respect to changes in the output level?

  1. Does it stay fixed during irrespective of the output level as fixed cost,
  2. Does it change proportionately along with the change in output level as variable cost,
  3. Does it remain fixed while output is zero however increases as output increases from that point onwards as semi-variable;
  4. Does the cost stay fixed within specific production bands however change instantly to another fixed level once the output band changes as a stepped cost?

Related Discussions:- Cost classification bases

Determine the relevant costs, Cowboy Constructions employs a full-time driv...

Cowboy Constructions employs a full-time driver and incurs costs for a vehicle to deliver paperwork between each of their building sites. Select Couriers has offered to carry out t

Calculate the equivalent annual cost, A plant is considering the replacemen...

A plant is considering the replacement of a piece of equipment in its materials handling system with a new piece. If the company's cost of capital is 10%. Should the present asset

Monetary performance and the financial position, The question required cons...

The question required consideration of both the monetary performance and the financial position, from the perception of a potential lender. As with previous questions, candidates w

Rvu methodology, Assume that a primary care physician practice performs onl...

Assume that a primary care physician practice performs only physical examinations.  However, there are three levels of examinations I, II, III - that vary in depth and complexity.

Financial statement issues that are unique to manufacturers, Financial Stat...

Financial Statement Issues that are Unique to Manufacturers Different from the retailers, manufacturers have three exclusive inventory category: 1) Raw Materials, 2)Work in

Costing term, Match each of the six following terms with the phrase that mo...

Match each of the six following terms with the phrase that most closely describes it. Each answer may be used only once. _____ 1. Direct costs _____ 2. Fixed costs _____ 3

Labour variances, L ABOUR VARIANCES Labour Cost Variance (LCV) De...

L ABOUR VARIANCES Labour Cost Variance (LCV) Described by the ICMA, London, 'Labour cost variance is the variation between the standard direct wages specified for the pro

Calculate earnings, The Smiths have two children who live with them: Sandy ...

The Smiths have two children who live with them: Sandy and Judy. Both are full-time students. Sandy is an accomplished singer and made $4,200 during the year performing at special

Calculate the inventory turnover ratio, The following information is availa...

The following information is available for the automotive division of Ford Motor Company for 2009.  The company uses the LIFO inventory method.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd