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Cost can be defined as the amount of expenses incurred on or attributable to a specific thing or activity for a specific purpose. It can also be inferred as the monetary measurement of the amount of resources used for the purpose of production of goods and rendering services. The process of planning and controlling the budget of a business and monitoring its effects is called as cost management. Cost management plans are used in many business fields for specific projects to measure and calculate the expected costs. After the completion of the project, the actual costs and the predicted costs can be compared and the factors related to this can be analyzed which can help cost management predictions and budgets in future. It helps in keeping the business under control and avoids over-expenditures. The detail description and analysis of Cost concept and management needs is given by Cost concept and management needs Assignment Help.
Elements Of Cost Concept And Management Needs
The different elements of cost concept and management explained in Cost concept and management needs Assignment Help are
Material: – This is one of the primary elements of the cost concept. We need a material whenever we have to produce or manufacture a material. So basically a material which becomes an integral part of the final finished product and also we can assign it to a specific physical unit for a definite purpose is termed as Direct Material. It is also referred as a raw material, stores material, processing material, production material, prime material etc.
Labour: – Labour is one of the most important factors of production. To convert raw materials into finished goods, we need human resource, and such human resource is called as labour. Labour can also be categorised into two types given in Cost concept and management needs Assignment Help are
1) Direct labour and
2) Indirect Labour.
The type of labour which is said to participate actively and directly in the process of production of commodity. And indirect labour is that type of labour which we cannot easily associate and identify the job, raw material, specific product and production of the commodity.
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Expenses: – the sum total of the cost incurred in the production and manufacturing of goods excluding the material cost and the labour cost is termed as “expenses”. Expenses can be divided into two types: – 1) Direct Expenses and 2) Indirect Expenses. Direct expenses can be defined as those expenses that are easily, directly and fully allocated to specific cost or center units whereas indirect expenses are those expenses that cannot be directly, fully and easily allocated to specific cost or center units. The various techniques can be better understood and necessary materials can be provided by Cost concept and management needs Assignment Help.
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