Material costs - cost accumulation, Cost Accounting

Material Costs - Cost Accumulation

However 'Materials' refer to the tangible inputs into the procedure of producing useful output.  They might be indirect materials or direct materials or overheads as like an example of, to produce tea, tea-leaves are the material or as input.

Material Cost Classification

Material costs may be classified as like:

a) Direct Material Cost:  it refers to costs of materials such may readily be identified through output units. The cost of timber utilized in the manufacture of a chair is as an example of, a direct material.

b) Indirect Material cost: it refers to items of raw materials for that it would be difficult and or inefficient to attempt to charge directly to exact cost units. As like an example of, the glue employed to bind the joints in the assembly of a chair

Some other examples of indirect materials involve as:

- Materials employed by service departments as an example of, spare parts used through maintenance department in servicing plant and repairing and machinery

- Materials employed by non production functions as like an example of stationary employed in accounting department

Posted Date: 2/5/2013 4:27:28 AM | Location : United States







Related Discussions:- Material costs - cost accumulation, Assignment Help, Ask Question on Material costs - cost accumulation, Get Answer, Expert's Help, Material costs - cost accumulation Discussions

Write discussion on Material costs - cost accumulation
Your posts are moderated
Related Questions
Outdoor Travel Inc. needs to estimate the cost of capital for the evaluation of capital expenditures. A typical project is financed with 25% debt-to-value ratio (i.e., D/(D+E) =

Rediger Inc. a manufacturing company, has provided the following data for the month of June. The balance in the Work in Process inventory account was $22,000 at the beginning of th

Types of Standard Costs The standard cost set could be ideal, basic, attainable or current. i. Basic Standards: These are long term standards that would keep unchanged ov

This is the income received but not earned throughout the accounting period. Conversely, this is the income for those services are to be rendered in future. Such income is deducted

First in First Out or FIFO FIFO method is based upon the assumption such stock purchased first is issued first. Prices of stock purchased first are employed to determine the v

what is cost

Apportionment of Overheads Apportionment of overheads occurs whereas the net value of an overhead item is shared among more or two cost centers that employ the overheads. Th

The Pacific Manufacturing Company operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. Its predetermined overhead rate was based

The Smiths decided to convert Ron's home into a furnished rental house. After several minor repairs (touching up the paint, replacing screens, pressure-washing), the property was a

The balance sheet and income statement for Bingle Ltd is presented to you as follows: Balance Sheet Extract as at 30 June 2012 with comparatives