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

Estimate fixed overhead variances, Estimate Fixed Overhead Variances ...

Estimate Fixed Overhead Variances Referring to data, we can estimate the fixed overhead variances as given below: Budget for December 2003;

Provisions or estimated liabilities, Where the liabilities are identified b...

Where the liabilities are identified but the amounts cannot be precisely found, we estimate the liability and give for it as a liability. A common illustration is income tax payabl

Break even analysis, B REAK EVEN ANALYSIS Break even analysis is a bro...

B REAK EVEN ANALYSIS Break even analysis is a broadly used technique to study cost-volume-profit relationship.  It can be explained as - 'a system for determination of that le

Calculate the predetermined overhead rate, Bubba's Crawfish Processing Comp...

Bubba's Crawfish Processing Company uses a traditional overhead allocation based on direct labor hours. For the current year, overhead is estimated at $1,150,000, and direct labor

Labour variances, Labour Variances From our basic data, we can ca...

Labour Variances From our basic data, we can calculate the labour variances as given as: i. Labour Rate Variance = (AH x AR) - (AH  x SR)

What is subphylum uniramia, Tlie subphylum is called Uniramia because of t...

Tlie subphylum is called Uniramia because of the presence of unbranched appendages. These animals have non-jointed mandibles, uubranched appendages without any palps. They have

Determine the expected return, Imagine a world in which there are only two ...

Imagine a world in which there are only two investment assets: Hasbro Inc. Stock (HAS) and McDonalds stock (MCD). The table below lists annual total returns (%) for each of the las

Inventory management and control, Inventory Management and Control Her...

Inventory Management and Control Here the objectives of inventory management are as: 1. To ensure adequate stocks to permit for continuous production/operations, and

What is chargeback, A process in the industry where a wholesaler needs an a...

A process in the industry where a wholesaler needs an amount that is the difference among the manufacturer's price to the wholesaler and the contract price to the resale customer.

Demerits of break even point, DEMERITS OF BREAK EVEN POINT 1. It pays n...

DEMERITS OF BREAK EVEN POINT 1. It pays no attention to considerations like effect of government policy changes, changes in the marketing environment etc 2. Fixed cost, enti

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