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Cost accountancy is the application of costing and cost accounting principles, methods and techniques to the science…
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Cost centre is defined as a location, machine, person, department, division, or any equipment or group…
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Impersonal Cost Centre: consist items of impersonal nature like an equipment or location…
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Direct Cost are all the expenses which can be identified with the individual product…
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Fixed Cost is the cost which remains constant ...Variable Cost is the cost which varies directly in proportion ...Semi-variable Cost is the cost which is neither fixed nor variable in nature
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Controllable Cost are the costs which can be influenced by the action...Uncontrollable Cost are the costs which cannot be influenced by the action..
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Normal Cost are the normal or regular costs which are incurred in the normal conditions…
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Opportunity Cost is the cost incurred by the organisation when one alternative is selected over another..
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Sunk Cost is the sum that has already been incurred and cannot be recovered by any decision made now or in future. …
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Following things should be taken into consideration while installing a costing system:..
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