Manufacturing concern to organization, Cost Accounting

Manufacturing Concern to Organization

There are three manufacturing centres as Making, Packing and Finishing.  These are supported through five support departments, namely Maintenance, Administration, Power, Selling and Distribution. All the several costs incurred in those departments produce the cost of sale of the finished product such is offered for sale in the market.  It is possible such some departments reciprocally support each other, as an instance, in the above figure, the power department gives power to the maintenance department; in return, the maintenance department keeps the power department.

The departments can be viewed like cost centres like we can accumulate and identify costs in regard to them.  The finished products could be viewed also like cost centres beneath the similar logic.  So now, is a student a cost centre? The reply is yes like cost can be accumulated and identified per every student served.

Posted Date: 2/5/2013 2:36:22 AM | Location : United States







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