Introduction to Cost Accounting Flashcards
it is the amount of expenditure incurred on, attributable to a given thing
cost
it is the process of classifying, recording, and appropriate allocation of expenditure for the determination of the costs of products or services, the relation of these costs to sales values and the ascertainment of profitability.
cost accounting
The substance from which the finished product is made is known as
material
is one which can be directly or easily identified in the product.
direct material
One which cannot be easily identified in the product.
indirect material
lubricants, oil, consumables
factory level
Printing, stationery, postage, telegram.
office level
Packing material, printing and stationery
selling & distribution level
The human effort required to convert the materials into finished products is called
labour
one which can be conveniently identified or attributed wholly to a particular job, product or process
direct labor
Cannot be conveniently identified or attributed wholly to a particular job, product or process.
indirect labor
Those expenses other than materials and labour.
expenses
Those expenses which can be directly allocated to a particular job, process, or product.
direct expenses
expenses which cannot be directly allocated to a particular job, process or product.
indirect expenses
BASIS OF NATURE (3)
- material
- labor
- overhead expenses
can be incurred inside the factory other than material and labor, small expenses needed to be incurred for the production of products.
overhead expenses
they are also examples of overhead expenses.
indirect labor and indirect material
Costs incurred in the production of products.
production cost
office costs, supply expenses na ginagamit ng mga admin sa loob ng office.
administration cost
cost once na binenta na si product, marketing cost, delivery costs, costs na nakuha sa transaction with customers, advertising costs.
selling cost
cost sa delivery ng products, the expenses a business incurs to make its products or services available to customers.
distribution cost
maiincurred whether mag-operate or not
is a business expense that doesn’t change based on how much a company produces or sells.
fixed cost
Doesn’t incur kapag hindi nag-operate
expenses that change in proportion to a business’s production volume.
variable cost
are expenses that have both fixed and variable components.
semi variable cost
Kaya i-manipulate, variable cost
expenses that a company can change in response to business conditions.
controllable cost
hindi kaya i-manipulate
is a cost that cannot be directly influenced or altered by a specific manager or department within an organization.
uncontrollable cost
refers to a cost that is expected to occur regularly during standard business operations.
normal cost
an unusual or unexpected cost that arises due to abnormal situations
abnormal cost
Costs incurred in the past
historical cost
is an estimated cost that’s calculated before production or purchasing.
It’s also known as a standard cost or budgeted cost.
predetermined cost
direct material, direct labor, cost mismo needed for production.
direct cost
small costs needed for production, indirect materials. Necessary for the operation, but aren’t directly tied to a specific project.
indirect cost
is the increase or decrease in total production cost if output is increased by one more unit.
marginal cost
The value of what is given up when making a decision.
money or benefits lost by not selecting a particular option during the decision-making process
opportunity cost
“a production or service, function, activity or item of equipment whose costs may be attributed to cost units.
cost centre
example of cost centre (2)
- machine
- salesperson
“Unit of quantity of product, service or time (or combination of these) in relation to which costs may be ascertained or expressed.
is a standard or unit of measurement of the goods manufactured or service rendered.
cost unit
