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Cost concept is very useful and helpful for accounting. There are different types of cost concept and knowing each one of them can be difficult for a student. It can be a bit too much as a student has a lot of other things to focus on. Different cost includes opportunity cost, the real cost, money cost etc. To complete an assignment on cost concept can be challenging but with our online service for cost concept assignment help, you don’t need to worry. At cost concept assignment help, we have set of our team who are expert in this subject and they make sure that your assignment is done perfectly for you.
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Cost means the amount of expenses incurred for a specific thing or activity. The amount of resources used for the production of goods and for rendering services, which can be calculated in monitory terms is also called as cost. Assets and expenses are recorded as per their actual price in the books of account. Besides the amount paid to purchase an asset, it also includes expenses like legal expense, installation charges etc.
Elements of cost:
- Elements of cost can be divided into the material, labour and expenses. Let’s try to understand them.
Material: Material is required to produce or manufacture goods. It is further divided into the direct and indirect material. Direct material is required to produce a specific product and can be easily identified. For example, sugarcane for preparing sugar, gold for making jewellery, etc. The indirect material is used in office, factory etc and can’t be identified easily. For example, stationary, printing etc.
Labour: To convert material into finished goods, labour is required. They are an important factor of production. Labour is further divided into direct and indirect labour. Examples of direct labour are wages paid to a carpenter for making furniture, payment made to tailor for making garment etc. They can be easily identified and recorded in the books of accounts where as indirect labour is difficult to identify. For example, wages of store keeper, salary of salesman etc.
Expenses: Cost incurred to produce goods or services other than material cost and labour cost is an expense. It is further divided into direct and indirect expense. An example of direct expenses is the cost of patents and royalties, freight charges etc. Examples of indirect expenses are rent, insurance, taxes etc.
Types of cost:
a) Fixed cost: A cost which remains fixed for a particular period of time is fixed cost. Fixed cost increases with the decrease in production and vice versa. An example of fixed cost is the salary of employees, insurance and rent of building etc.
b) Variable cost: A cost which changes with the change in volume of production is a variable cost. For example, direct labour, direct material, direct expenses etc.
c) Semi-variable cost: Cost which remains constants at some given level of production and other vary with the change in volume of the production is semi-variable cost. For example, telephone expenses where a rental plan is fixed but call charges may vary.
There are other costs as product cost, period cost, direct cost, indirect costs etc. To complete an assignment on cost concept, a clear understanding of the subject is required which will need your complete attention and time. Our expert at cost concept assignment help can save you from this hassle and ease your life by completing your assignment on time and without any error. Not only this, our expert in this subject is available 24/7 for you and we’re quite affordable. At cost concept assignment help, we understand your need and accordingly planned our online service.
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