Professional Documents
Culture Documents
10.costing 1 - Afm
10.costing 1 - Afm
ELEMENTS OF COST
a) MATERIAL COST
According to CIMA, London, material cost is the cost of
commodities supplied to an undertaking
Material cost includes cost of procurement, freight
inwards, taxes, insurance etc directly attributable to the
acquisition.
Material cost be
LABOUR COST
cost of remuneration (wages, salaries,
commissions, bonuses etc.) of the employees of
an undertaking. It includes all fringe benefits like P.F
contribution, gratuity, ESI, overtime, incentive bonus
etc.
EXPENSES
Expenses can be defined as the cost of services
provided to an undertaking and the notional cost of the
use of owned assets. (CIMA)
CLASSIFICATION OF COST
Fixed cost
Volume of production
Rs cost
Rs cost
Volume of production
VARIABLE COST
Volume of
production
Rs cost
Rs cost
Volume of production