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 the ß, Calculate the β of Maine Corporation from the following da...

Calculate the β of Maine Corporation from the following data. The prices are at the beginning and at the end of each year     Normal 0 false false

Calculate the payout ratio, The following information is available for Whit...

The following information is available for Whitlock Corporation in millions average common stockholders equity 2014-$2,532 2013-$2,591 dividends declared for common stockholders 20

Material price variance (mpv), Material Price Variance (MPV) This may b...

Material Price Variance (MPV) This may be described as the difference amoung the actual price and the standard price of the materials consumed. MPV = Actual quantity used (S

Behavioural aspects of standards, Behavioural Aspects of Standards Bud...

Behavioural Aspects of Standards Budgets and Standards rely heavily on the people who have to work to meet them. Since the detailed nature of standard costing and its involvem

Contract accounts - contract costing, Contract Accounts It is a separa...

Contract Accounts It is a separate account such is maintained and opened for every contract undertaken for the reasons of accumulating cots.  Every contract is given a number

Cost of labor, The number of workdays varies from month to month due to the...

The number of workdays varies from month to month due to the number of weekdays, holidays, days of vacation, and sick leave taken in the month. The number of units produced in a mo

Cost book-keeping, Cost Book-Keeping In cost account accounts, extensi...

Cost Book-Keeping In cost account accounts, extensive employ is made of control accounts that are based in the similar principles as those utilized in financial accounts.  Two

What was the cost of raw materials, Raw Materials: Manufacturing Overhead B...

Raw Materials: Manufacturing Overhead Bal 1/1: 36,000 Credits: ? Debits: 383,000 Credits: ? Debits: 470,000 Bal: 12/3: 156,000 Work in Process: Bal 1/1: 73,000 Credits: 770,000

Direct materials total variance, Direct Materials Total Variance Direc...

Direct Materials Total Variance Direct materials total variances refer to the difference between the standard direct material cost of the actual production volume and the actu

Prepare trial balance for transactions, Encik Farid, a sole trader, started...

Encik Farid, a sole trader, started his business on 1 May 2010 under the name Farid Enterprise. The following are his business transactions for the month of May a. Encik Farid b

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