Cost concepts / classification of costs, Cost Accounting


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
Posted Date: 10/15/2012 6:52:11 AM | Location : United States

Related Discussions:- Cost concepts / classification of costs, Assignment Help, Ask Question on Cost concepts / classification of costs, Get Answer, Expert's Help, Cost concepts / classification of costs Discussions

Write discussion on Cost concepts / classification of costs
Your posts are moderated
Related Questions
Amanda Deal, president of XYZ, had recently finished an arduous round of meetings with her financial staff". Those meetings dealt with the details necessary to produce an accurate

hml analysis , sde analysis,sos analysis, golf analysis , xyz analysis

British Columbia Lumber has a Raw Lumber Division and a Finished Lumber Division. The  variable costs are: 1.Raw Lumber Division: Rs. 100 per 100 board-feet of raw lumber 2.F

On January 1, 2013, VKI Corporation awarded 12 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. On the gr

The next year's budget for Benny, Inc., is given below: Product 1-2 Sales $945,000-688500 Variable costs 459,900-297,000 Fixed costs 300,000-3

Limitations of abc analysis

I would like to know the solution on this one.

Compute the rate to be used in each department for applying overhead in both departments Budegeted Cost sheet   Amount in $

Prime Essentials Limited is a small private corporation. The owner plans to approach the bank for an additional loan or a line of credit to facilitate expansion. The company bookke