Cost Accounting - we are the one who will create the product.

THERE ARE 3 COST ELEMENTS

1. Raw Materials
2. Labor
3. Factory Overhead.

Pag ginawa ang tawag PROCESS COSTING.

- Job order Costing = Cable, Lamesa, Kama
- Process Costing = Ginagamit ng mga san miguel beer. Mga liquid or chemical company, zonrox or
softdrinks

Raw materials
A. Papers = 100 PHP.
B. Ink = 50 PHP.

Labor
A. Publisher = 100 PHP.

Factory Overhead
A. Utilities Expenses = 50 PHP.

Total = 300 PHP (cost of goods manufactured) kapag merchandising (cost of sales)

Cost – Already purchased, puhunan, measureable to secure benefit. It is a sacrificed or a risk.

Direct Material Cost – Table from wood.

Variable cost – Direct Material Cost, Direct Labor Cost, Variable Factory Overhead
Fixed Cost –

Hindi nagamit, tapos bumili pa dahil kulang. Pagsimula next accounting is = total ending raw materials
available for use

Direct Cost – Mga naglalabor

Indirect Cost – Yung boss na naguutos.

Capital Expenditures – Office equipment, non current

Revenue Expenditures – Salaries Expense, Rent expense

Historical cost – mga standard costing na ginagamit ng matagalan. Sa mga cost dati ay ginagamit parin.
Future Cost – Ito yung hindi masabi, it is based on inflation.
Controllable cost – ito yung mga cost na pwedeng hindi gastusin, pwede babaan,
Non-controllable cost – Ito yung mga hindi nacocontrol.

Standard Cost –
Budgeted Cost
Absorption costing / Full Costing
Variable Costing
Information Costs
Ordering Cost
Carrying Cost
Out of pocket costs

Relevant Costs
Incremental costs
Marginal Cost
Opportunity Cost
Sunk Cost
Value Added Cost

Contribution Margin -