Functional classification of costs, Cost Accounting

Assignment Help:

Functional Classification of Costs

Beneath this classification, costs are classified according to the function they execute in an organization.  Costs can functionally be classified like:

a) Production Costs: Are all the costs incurred in production of units throughout a time period as like an example of raw material costs, and production overheads and direct labour costs.

b) Administration Costs:  These are all costs incurred in making sure the smooth running of the organization so like to facilitate the production and sale of services and goods.  These involve: salaries for the managers, salaries for support staff like accountants, and secretaries and clerks

c) Distribution and Selling Costs:  These are costs such are incurred to enable the delivery of products and services to the real markets and complete or promote a sale. These costs include: saleswoman salaries, salesmen commission, advertising costs, depreciation on motor vehicles utilized through salesmen, the cost of fuel utilized through vehicles utilized for distribution reasons etc.

d) Other functional classifications


Related Discussions:- Functional classification of costs

Cost estimation methods, using the high low method how do i calculate the c...

using the high low method how do i calculate the costs that are expected when the output expected is out of the range given for example cost prdctn volume 110000

How would i calculate the debt amortization, How would I calculate the debt...

How would I calculate the debt amortization for a bond issued at discount with a maturity of 12 years, market interest rate at issue 10% annually, 5% semi annually, and has a state

Determine the velocity impulse, Problem: A satellite is launched into Ear...

Problem: A satellite is launched into Earth orbit by a Delta II launch vehicle (LV).  The Delta LV's engines do not perform as expected, and at upper-stage burnout the satellite

Absoption costing, 2001 2002 sale 3200 units 3500 uni...

2001 2002 sale 3200 units 3500 units selling prise Rs.60 Rs.65 unit produced 3400 units 3600 units direct metrial Rs 23 25

Determine cost, . Alice Company has received a special order from Jo...

. Alice Company has received a special order from John. John wishes to buy 100 units of Alice's product at a price of $48. The regular price is $65. The unit cost informati

Monetary performance and the financial position, The question required cons...

The question required consideration of both the monetary performance and the financial position, from the perception of a potential lender. As with previous questions, candidates w

Break-even calculations, Break-Even Calculations As they say, a picture...

Break-Even Calculations As they say, a picture is significance a thousand words, and this is undoubtedly true for the CVP graphic just presented. Though, everyone is not an art

Cost sheet, what is a cost sheet? what are its advantages?

what is a cost sheet? what are its advantages?

Assignment Choice #2: Accounting for Byproducts (Quantitativ, Pyramid Print...

Pyramid Printing Company is a printer of magazines and retail inserts. In addition, there are two joint products (food wrapping and book covers) and one byproduct (shipping-box ins

Irr, The following data pertains to an investment proposal: Required invest...

The following data pertains to an investment proposal: Required investment $400,000 Annual cost savings $105,700 Projected life of investment 6 years Projected salvage value $0 Req

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