131. Cost: The amount of expenditure
incurred on to a given thing.
132. Cost accounting: It is thus concerned with recording,
classifying, and summarizing costs for determination of costs of products or
services planning, controlling and reducing such costs and furnishing of
information management for decision making.
133. Elements of cost: (A) Material (B) Labour (C) Expenses (D)
Overheads
134. Components of total costs: (A) Prime cost (B) Factory cost (C)Total cost
of production (D) Total c0st
135. Prime cost: It consists of direct material direct labour
and direct expenses. It is also known as
basic or first or flat cost.
136. Factory cost: It comprises prime cost, in addition factory
overheads which include cost of indirect material indirect labour and indirect
expenses incurred in factory. This cost is also known as works cost or
production cost or manufacturing cost.
137. Cost of production: In office and administration overheads are
added to factory cost, office cost is arrived at.
138. Total cost: Selling and distribution overheads are added
to total cost of production to get the total cost or cost of sales.
139. Cost unit: A unit of quantity of a product, service or
time in relation to which costs may be ascertained or expressed.
140. Methods of costing: (A)Job costing (B)Contract costing (C)Process
costing (D)Operation costing (E)Operating costing (F)Unit costing (G)Batch
costing.
No comments:
Post a Comment