Cost Accounting - Classification and Components

On the basis of contrallability 1 Oppurtunity cost 2. Marginal cost 3. Avoidable I Unavoidable cost 4. Differential cost 5. Relevant & irrelevant cost 6. Conversion cost Components of casting 1. Prime cost 2: Factory cost = PM + Factory OH (overhead) PC 3. Office cost o' cost of Production = Factory cast office of admin expenses 4. Total cost = cost of production + selling & Distribution 4

Selling price = Total cost + Profit On the basis of consolablity variab the cost Fixed cost semi variable cost on the basis of Normality Normal cost A bnormal cos' COST SHEET A cost sheel is astatement that shows the various components of Total cost for a product and shows previous data Fox comparison FORMAT OF COST SHEET pening stock of Raw material X Add ; Purchase of raw material X Less: closing stock of raco material x x x Rawmaterials consumed X X X +) Direct labour X X Direct x X X expenses XXX

Add:- Factory over heads x x less :- sale of scrap Gross works cost X Addiopening stock of WIP 00 X less = closing stock of WIP Ner works cost (2) (Factory cost) 2 xxx Add: office and administration overhead XYY cost of production (B) Add : opening stock of finished goods xxx less closing stock of Anished goods xxx cost of goods sold C 4) xxx Add : selling & Distribution overheads xxx COSL of sales Crotal cost) ( 5) xxx Profit tx S ales xxx green