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\u00a0<\/span>Concept of cost accounting includes <\/span>direct material, indirect material, direct labour, indirect labour, direct overhead, indirect overhead<\/span><\/p>\n \u00a0<\/span>\u00a0<\/span><\/p>\n Keep in Mind (KIM) <\/span><\/b><\/p>\n Cost accounting is based on estimation before starting the production or service.<\/span><\/p>\n Cost should be include or charged only after incurred. <\/span><\/p>\n Cost accounting statement should give fact data; if there is any contingency or reserve, it should be shown separately.<\/span><\/p>\n Past losses should not be recovered from present or future profit.<\/span><\/p>\n Principle of the double-entry system of bookkeeping should be followed if possible.<\/span><\/p>\n<\/td>\n<\/tr>\n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n Raw materials<\/span><\/p>\n<\/td>\n woods, rubber, glass, iron, steel, paper, cloth, leather, cotton etc<\/span><\/p>\n<\/td>\n<\/tr>\n Components<\/span><\/p>\n<\/td>\n accessory (extra pieces of equipment) etc<\/span><\/p>\n<\/td>\n<\/tr>\n Consumable materials<\/span><\/p>\n<\/td>\n soap, detergent, cleaning brush, cotton waste etc<\/span><\/p>\n<\/td>\n<\/tr>\n Maintenance materials<\/span><\/p>\n<\/td>\n spare parts, tools etc<\/span><\/p>\n<\/td>\n<\/tr>\n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n Some cost units under manufacturing or service <\/span><\/b><\/p>\n<\/td>\n<\/tr>\n Vehicle<\/span><\/p>\n<\/td>\n per unit<\/span><\/p>\n<\/td>\n<\/tr>\n Gas<\/span><\/p>\n<\/td>\n per cubic meter<\/span><\/p>\n<\/td>\n<\/tr>\n Gas cylinder <\/span><\/p>\n<\/td>\n Per unit<\/span><\/p>\n<\/td>\n<\/tr>\n Screws manufacturing<\/span><\/p>\n<\/td>\n per 1,000<\/span><\/p>\n<\/td>\n<\/tr>\n Brick work<\/span><\/p>\n<\/td>\n per 1,000<\/span><\/p>\n<\/td>\n<\/tr>\n Transport<\/span><\/p>\n<\/td>\n per passenger km or per ton km<\/span><\/p>\n<\/td>\n<\/tr>\n Electricity<\/span><\/p>\n<\/td>\n per megawatt, kilo watt or unit<\/span><\/p>\n<\/td>\n<\/tr>\n Textile<\/span><\/p>\n<\/td>\n per meter or per pound weight (Ib)<\/span><\/p>\n<\/td>\n<\/tr>\n Collieries<\/span><\/p>\n<\/td>\n per tone<\/span><\/p>\n<\/td>\n<\/tr>\n Petroleum or water<\/span><\/p>\n<\/td>\n per cubic liter <\/span><\/p>\n<\/td>\n<\/tr>\n Electrical\/electronic<\/span><\/p>\n<\/td>\n per unit<\/span><\/p>\n<\/td>\n<\/tr>\n <\/p>\n <\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Cost accounting is based on estimation. <\/span><\/p>\n In cost accounting, something release for obtaining something. <\/span><\/p>\n The amount is released for a specific activity. <\/span><\/p>\n The specific activity may be a product, job, service, process or other activity. <\/span><\/p>\n A cost is compound of three elements; they are material, labour, expenses or overhead.<\/span><\/p>\n \u00a0<\/span><\/b><\/p>\n All types of goods that are used in the process of production are called material. <\/span><\/p>\n The expenses incurred for the material is termed as material cost. <\/span><\/p>\n It also includes all those costs related to the purchase and storing of material. <\/span><\/p>\n There are two types of materials; they are direct materials and indirect materials.<\/span><\/p>\n <\/p>\n \u00a0<\/span><\/b><\/p>\n <\/p>\n <\/p>\n A large part of materials in finished goods is known as direct materials. <\/span><\/p>\n These material costs can be identified easily from the finished product. <\/span><\/p>\n Sometimes the value of direct materials may be less than labour cost. <\/span><\/p>\n \u00a0<\/span><\/b><\/p>\n A small part of materials in finished goods is known as indirect materials. <\/span><\/p>\n Without indirect materials, finished goods cannot be completed. <\/span><\/p>\n Sometimes the value of indirect materials cannot be directly identified from a particular product.<\/span><\/p>\n \u00a0<\/span><\/p>\n ###########<\/span><\/p>\n Click on the link for <\/span>YouTube<\/span><\/b> videos<\/span><\/p>\n<\/td>\n<\/tr>\n Cost Reconciliation Statement <\/span><\/p>\n<\/td>\n\n\n
\n \n General principles of cost accounting <\/span><\/b><\/h3>\n
\n \n \n \n Material<\/span><\/b>s <\/span><\/b><\/b><\/h3>\n<\/td>\n<\/tr>\n
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(A) MATERIALS<\/span><\/b><\/b><\/h3>\n
Direct material <\/span><\/b><\/h4>\n
Indirect material<\/span><\/b><\/h4>\n
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