Professional Documents
Culture Documents
Accounting
Introduction
Lecture-1
Accounting
Accounting
Financial Accounting
Cost Accounting Management Accounting
Investors Managers
Lenders Directors
Govt Agencies
Suppliers
Management
Employees
Branches Of Accounting
Minimization of cost
Maximization of profit
Pricing
Make or Buy
Shut down or Continued operation
Equipment Replacement
Purpose Of Cost Accounting
Cost Classification
Other Direct
Direct Material Direct Labor Factory Overhead
Expenses
Direct Cost
The cost that is incurred in producing product or services but which can
not traced in full
FOH means all expenses of factory other than direct material, direct
labor and other direct production expenses.
Indirect material
Indirect Labor
Deprecation of machinery
Factory utility bills
Cost classification
Total Factory
Total Total Total =
Cost
Cost classification
3000
Fixed cost
2000
1000
Fixed cost
No. of units
Variable Cost
Variable cost
No. of units
Variable Cost Per Unit Reaction
10 10,000 1,000
20 20,000 1,000
Semi Variable Cost
The cost that is partly fixed and partly variable cost. For
example electricity bills, salesman salary.
3000
No. of units
Summary
Total cost
Variable cost
3000
Total cost
2000 Fixed cost
1000