Page 2 :
COST - MEANING, Cost means the amount of, expenditure ( actual or notional), incurred on, or attributable to,, a given thing.
Page 3 :
COST ACCOUNTING MEANING, Cost accounting is 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 to management for decision, making
Page 5 :
MATERIAL: The substance from which the finished, product is made is known as material., Direct material is one which can be directly or, easily identified in the product Eg: Timber in, furniture, Cloth in dress, etc., Indirect material is one which cannot be easily, identified in the product.
Page 6 :
Examples of Indirect material, At, , factory level – lubricants,, oil, consumables, etc., At office level – Printing &, stationery, Brooms, Dusters,, etc., At selling & dist. level –, Packing materials, printing &, stationery, etc.
Page 7 :
LABOUR: The human effort required to, convert the materials into finished product, is called labour., DIRECT LABOUR is one which can be, conveniently identified or attributed, wholly to a particular job, product or, process., Eg:wages paid to carpenter, fees paid to, tailor,etc., INDIRECT LABOUR is one which cannot be, conveniently identified or attributed, wholly to a particular job, product or, process.
Page 8 :
Examples of Indirect labour, At, , factory level – foremen’s, salary, works manager’s salary,, gate keeper’s salary,etc, At office level – Accountant’s, salary, GM’s salary, Manager’s, salary, etc., At selling and dist.level –, salesmen salaries, Logistics, manager salary, etc.
Page 9 :
OTHER EXPENSES are those expenses other than, materials and labour., DIRECT EXPENSES are those expenses which can be, directly allocated to particular job, process or, product. Eg : Excise duty, royalty, special hire, charges,etc., INDIRECT EXPENSES are those expenses which cannot, be directly allocated to particular job, process or, product.
Page 10 :
Examples of other expenses, , , At factory level – factory rent, factory insurance,, lighting, etc., , , , At office level – office rent, office insurance, office, lighting, etc., , , , At sales & dist.level – advertising, show room expenses, like rent, insurance, etc.
Page 11 :
COST SHEET, DIRECT MATERIAL, DIRECT LABOUR, DIRECT EXPENSES, PRIME COST, FACTORY OVERHEADS, , FACTORY COST, OFFICE OVERHEADS, COST OF PRODUCTION, SELL & DIST OVERHEADS, COST OF SALES, PROFIT, , SALES
Page 12 :
COST SHEET - ADVANCED, OPENING STOCK OF RAW MATERIALS, +PURCHASES, +CARRIAGE INWARDS, -CLOSING STOCK OF RAW MATERIALS, VALUE OF MATERIALS CONSUMED, +DIRECT WAGES, +DIRECT EXPENSES, PRIME COST, +FACTORY OVERHEADS, +OPENING STOCK OF WIP, -CLOSING STOCK OF WIP, FACTORY COST, (CONT.)
Page 13 :
FACTORY COST, +ADMINISTRATIVE OVERHEADS, COST OF PRODUCTION, +OPENING STOCK OF FINISHED GOODS, -CLOSING STOCK OF FINISHED GOODS, , COST OF GOODS SOLD, +SELL. & DIST. OVERHEADS, COST OF SALES, +PROFIT, , SALES
Page 14 :
COST CLASSIFICATION – ON THE, BASIS OF, , , , , , , , , , , , Nature, Function, Direct & indirect, Variability, Controllability, Normality, Financial accounting classification, Time, Planning and control, Managerial decision making
Page 15 :
ON THE BASIS OF NATURE, , , MATERIALS, , , , LABOUR, , , , EXPENSES
Page 16 :
ON THE BASIS OF FUNCTION, , , MANUFACTURING COSTS, , , , COMMERCIAL COSTS – ADM AND S&D COSTS
Page 17 :
ON THE BASIS OF DIRECT AND, INDIRECT, , , DIRECT COSTS, , , , INDIRECT COSTS
Page 18 :
ON THE BASIS OF VARIABILITY, , , FIXED COSTS, , , , VARIABLE COSTS, , , , SEMI VARIABLE COSTS
Page 19 :
ON THE BASIS OF, CONTROLLABILITY, , , CONTROLLABLE COSTS, , , , UNCONTROLLABLE COSTS
Page 20 :
ON THE BASIS OF NORMALITY, , , NORMAL COSTS, , , , ABNORMAL COSTS
Page 21 :
ON THE BASIS OF FIN. ACC, , , CAPITAL COSTS, , , , REVENUE COSTS, , , , DEFERRED REVENUE COSTS
Page 22 :
ON THE BASIS OF TIME, , , HISTORICAL COSTS, , , , PRE DETERMINED COSTS
Page 23 :
ON THE BASIS OF PLANNING, AND CONTROL, , , BUDGETED COSTS, , , , STANDARD COSTS
Page 24 :
ON THE BASIS OF MANAGERIAL DECISION MAKING, , , , , , , , , , , , , MARGINAL COSTS, OUT OF POCKET COSTS, SUNK COSTS, IMPUTED COSTS, OPPORTUNITY COSTS, REPLACEMENT COSTS, AVOIDABLE COSTS, UNAVOIDABLE COSTS, RELEVANT AND IRRELEVANT COSTS, DIFFERENTIAL COSTS
Page 25 :
TERMS IN COST ACCOUNTING, , , COST UNIT, , , , COST CENTRE, , , , COST ESTIMATION, , , , COST ASCERTAINMENT, , , , COST ALLOCATION, , , , COST APPORTIONMENT, , , , COST REDUCTION, , , , COST CONTROL
Page 26 :
METHODS OF COSTING, , , JOB COSTING, , , , CONTRACT COSTING, , , , BATCH COSTING, , , , PROCESS COSTING, , , , UNIT COSTING, , , , OPERATING COSTING, , , , OPERATION COSTING, , , , MULTIPLE COSTING
Page 27 :
TYPES OF COSTING, , , UNIFORM COSTING, , , , MARGINAL COSTING, , , , STANDARD COSTING, , , , HISTORICAL COSTING, , , , DIRECT COSTING, , , , ABSORBTION COSTING
