Cost concepts / classification of costs, Cost Accounting

Assignment Help:

COST CONCEPTS / CLASSIFICATION OF COSTS

1. According to functions

  • Administration cost / office cost
  • Selling cost
  • Production cost / factory cost / manufacturing cost
  • Distribution cost

2. According to the nature of the costs

  • Semi - variable or semi-fixed cost
  • Step costs
  • Fixed cost
  • Variable cost

3. According to the controllability

  • Uncontrollable cost(Uncontrollable throughout authority and liability laid down by the organizational formation)
  • Controllable cost (controllable throughout authority and liability laid down by the organizational formation)

4. According to normality

  • Abnormal cost
  • Normal cost

5. According to relevance to decision making

  • Conversion cost (cost of transforming raw material into finished stock)
  • Sunk cost (historical or past paid cost)
  • Shut down cost (fixed cost)
  • Replacement cost (cost of replacing assets)
  • Imputed cost (non- cash cost which is calculated)

6. Others

  • Relevant cost and irrelevant cost (relevant to the decision at hand)
  • Out of pocket cost (Cash expenses)
  • Direct cost and indirect cost (based on traceability to the final product or service)
  • Avoidable / escapable and unavoidable costs
  • Product costs and period costs (fixed costs and variable costs)
  • Opportunity cost (cost of an opportunity lost)
  • Imputed or Hypothetical cost (non-cash expenditure)
  • Decision making costs and accounting costs
  • Differential, incremental or detrimental costs
  • Joint costs and common costs etc
  • Traceable, untraceable / common costs

Related Discussions:- Cost concepts / classification of costs

Calculate cost or equivalent units, Calculate Cost or Equivalent Units ...

Calculate Cost or Equivalent Units The given work in progress account concerns to the blending department of a company, a soft-drinks company for the month of January in 1999

Absorption costing and marginal costing, Absorption Costing and Marginal Co...

Absorption Costing and Marginal Costing Product costs are costs identified along with goods produced or purchased for resale. That costs are initially identified like part of

Limitations of budgeting, Limitations of Budgeting 1. Too mush relian...

Limitations of Budgeting 1. Too mush reliance may reason resistance or inflexibility to change. 2. Difficult to set levels of attainment. It may result into too tight budg

Calculate the monetary of the inventory, Learning Objective: After completi...

Learning Objective: After completing the project, the student will have gained familiarity, understanding and mastery of programming a realistic but simple application in Assembly

What is the gain or loss on the sale, a machine is purchased on july 1 2009...

a machine is purchased on july 1 2009 for $181,500. It has an expected useful life of 11 years and no salvage value. After five years, the machine is sold for $98,000 cash. What is

Process costing, If question (CA IPCC) is silent which method to follow: av...

If question (CA IPCC) is silent which method to follow: avg cost or fifo or lifo?

Example of economic order quantity, Example of Economic Order Quantity ...

Example of Economic Order Quantity The EOQ model supposes : - Annual demand is recognized - Hold costs are constant and recognized - Ordering costs are recognized a

Standards and budgets, Standards and Budgets Budgets like you recall f...

Standards and Budgets Budgets like you recall from the previous section, are simply plans for expected future performance expressed in quantified monetary terms. Therefore the

Capital initial investment, Now along with the illustration of Ramsons at h...

Now along with the illustration of Ramsons at hand, this is not tough for us to understand that Ramsons have invested the 'money to make money'. Where has Ramsons invested the mone

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