Create a Book
Enter your search terms
Submit search form
Try it FREE or V.I.P.
It's Quick and Easy!
Forgot your password?
is the internet's
online source for free ebook downloads, resources and authors
Cost and Management Accounting
Virtual University of Pakistan
This is an HTML version of the ebook and may not be properly formatted. Please view the PDF version for the original work.
Click to bookmark this page.
Click to increase font size.
Click to decrease font size.
Click to translate.
Leave a comment.
Add to Library
Add to Library
READ THIS BOOK AS
PDF Format is ideal for: PC's & Macs, iPhone, and Printing
The Text (TXT) format is the simplest format and can be read in any word processor. Plus it is printable.
The ePub format is ideal for the Sony Reader, Barnes & Noble Nook, BeBook, Bookeen, COOL-ER, Hanlin eReader, Hanvon and many other ebook readers
Mobipocket Format is ideal for: Amazon Kindle, Mobile Phones, Blackberry, Palm, IRex, ILiad, Hanlin, BeBook and other mobile devices
Cost & Management Accounting (MGT-402)
COST CLASSIFICATION AND COST BEHAVIOR
Cost Accounting is an expanded phase of financial accounting which provides management
promptly with the cost of producing and/or selling each product and rendering a particular service.
Management accounting is application of professional knowledge and skill in the preparation and
presentation of financial information in such a way as to assist management in decision making and
in the planning and control of operations of the entity
is computation of cost per unit, whereas the objective of
is to provide information to the management for decision making purposes.
Users of cost & management accounting are the decision makers and the managers of the
entity/organization for which all this exercise is undertaken.
Uses of Cost and Management Accounting
It determines total cost of production and cost of sales
It determines appropriate selling price
It discloses the profitable products, areas and activity/capacity levels
It is used to decide whether to manufacture or purchase for outside
It helps in planning and controlling the cost of production
Elements of Cost
Any product that is manufactured is the result of consumption of some resources. The
management, for its planning and controlling functions, must know the cost of using these
resources. The constituent elements of cost are broadly classified into three distinct elements:
Direct Material Cost
Direct Labor Cost
Other Production Cost
Elements of cost (Direct Material, Direct Labor, Other Production costs) can be classified as direct
cost or indirect cost.
A direct cost is a cost that can be traced in full to the product or service for which cost is being
Costs that can be economically identified with a specific saleable product or service (cost unit).
Direct material costs
are the costs of materials that are known to have been used in
producing and selling a product or rendering a service.
(C) Copyright Virtual University of Pakistan
Copyright © 2013 Free-eBooks.net™. All rights reserved.
Free-eBooks.net, Paradise Publishers Inc.