Knowledge in Cost accounting

Type of costs in cost accounting

cost accountingAns:Cost accounting is an accounting process that measures and analyzes the costs associated with products, production, and projects, so that correct amounts are reported on a company's financial statements. Cost accounting aids in decision-making processes by allowing a company to calculate, evaluate, and monitor its costs.Below are some of the types of costs used in cost accounting:1. Direct Costs Direct costs are related to producing a good or service. A direct cost includes materials, labor, expense, or distribution cost associated with producing a product. It can be easily traced to a product, department or project. For example, Ford Motor Company  manufactures cars and trucks. A plant worker spends eight hours building a car. The direct costs associated with the car are the wages paid to the worker and the parts used to build the car.2. Indirect CostsIndirect costs, on the other hand, are expenses unrelated to producing a good or service. An indirect cost cannot be easily traced to a product, department, activity or project. For example, with Ford Motor Company the direct costs associated with each vehicle include tires and steel. However, the electricity used to power the plant is considered an indirect cost because the electricity is used for all the products made in the plant. No one product can be traced back to the electric bill.3. Fixed CostsFixed costs do not vary with the number of goods or services a company produces. For example, suppose a company leases a machine for production for two years. The company has to pay Rs. 2,000 per month to cover the cost of the lease. The lease payment is considered a fixed cost as it remains unchanged.4. Variable CostsVariable costs fluctuate as the level of production output changes, contrary to a fixed cost. This type of cost varies depending on the number of products a company produces. A variable cost increases as the production volume increases, and it falls as the production volume decreases. For example, a toy manufacturer must package its toys before shipping products out to stores. This is considered a type of variable cost because, as the manufacturer produces more toys, its packaging costs increase. However, if the toy manufacturer's production level is decreasing, the variable cost associated with the packaging decreases5. Operating CostsOperating costs are expenses associated with day-to-day business activities but are not traced back to one product. Operating costs can be variable or fixed. Examples of operating costs, which are more commonly called operating expenses, include rent and utilities for a manufacturing plant. Operating costs are day-to-day expenses, but are not classified as costs of producing the products. Investors can calculate a company's operating expense ratio, which shows how efficient a company is in using their costs to generate sales.6. Opportunity CostOpportunity cost is the benefit given up when one decision is made over another. In other words, an opportunity cost represents an alternative given up when a decision is made. This cost is, therefore, most relevant for two mutually exclusive events. In investing, it's the difference in return between a chosen investment and one that is passed up. For companies, opportunity costs do not show up in the financial statements but are useful in planning by management. For example, if a company decides to buy a new piece of manufacturing equipment rather than lease it. The opportunity cost would be the difference between the cost of the cash outlay for the equipment and the improved productivity versus how much money could have been saved had the money been used to pay down debt.7. Sunk CostsSunk costs are historical costs that have already been incurred and will not make any difference in the current decisions by management. Sunk costs are those costs that a company has committed to and are unavoidable or unrecoverable costs. Sunk costs (past costs) are excluded from future business decisions because the costs will be the same regardless of the outcome of a decision.8. Controllable CostsControllable costs are expenses managers has control over and have the power to increase or decrease. For example, deciding on how supplies are ordered or the payroll for a manufacturing company would be controllable, but not necessarily avoidable.

Basic Accounting definitions

ACCOUNTING: Accounting can be defined as the subject by studying which the records of all monetary transaction of an individual , non - trading concern ,business undertaking and other for a particular period can be satisfactorily maintained and the result of transaction during given period can be analysed and measured at the end of the given period .Accounting is now more an information system then a mechanism for recording transaction and ascertaining the result thereofFINANCIAL ACCOUNTING : financial accounting deals with the recording of all financial transaction and preparation of statement for the use by management , outsiders like shareholders , banks or other financial institution , creditors etc.COST ACCOUNTING : Cost accounting is concerned with the ascertainment of all cost of various products and services and is used as the tool for controlling expenditure..

Nature of management accounting

Nature of management accounting . Its types and application .

COST ESTIMATING IN PROJECT MANAGEMENT

Cost estimating is the project management process in which whole planning , design , task , amount , material , work assign and Manager are required to estimate the whole vost

Project Cost Estimation By Aman

Project cost management is that in whole products and no of material is count to follow the instructions and make cost estimating for required products

Project Life Cycle in Project Management

Project lifecycle is that in which full project management which help to grow up the business

Standard Costing and Variance By Aman

Standard Costing is that produces a product of the Costing of variance analysis

Cost accounting

Cost accounting is a form of managerial accounting that aims to capture a company's total cost of production by assessing the variable costs of each step of production as well as fixed costs, such as a lease expense

NON PROFIT ORGANISATION ACCOUNTS

This pdf contains information and material based on NON PROFIT ORGANISATION ACCOUNTS

Cost Accounting presentation BBA(2nd semester)

This is a PPT about Cost accounting for BBA students (GGSIPU)

Classifications of Cost PPT

This is a PPT for Classifications of Cost. This will be useful for all BBA Students (GGSIPU)

Cost Accounting notes unit-1 BBA(2nd semester)

This is the notes for the unit-1 COST ACCOUNTING, for all BBA students (GGSIPU)