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Cost accounting is a very large subject it also consists of many parts of managerial studies as well. Our expert possesses the knowledge about the accounting and accounting Principles which makes them easy to understand the topic allotted by the universities to the universities scholars and get them with good homework and a practical assignment. An expert not only work for the students who are pursuing their graduation but are expert also provide MBA assignment help as well. In Master’s student gets very less time to go outside and have some leisure time. Our experts take all the burden and get them with a good assignment preparation.
Types of costs in cost accounting
There are multiple types of cost involved in the production of goods and services or in the selling of any particular good and services in the market. Some of the major types of cost are as follow:
- Sunk cost– Sunk cost is a type of cost which does not vary according to the change in any of the variables.
- Fixed cost– Another type of major cost is the fixed cost. Fixed cost is the cost which a company or a manufacturing unit have to pay irrespective of any changes in the variable cost.
- Opportunity cost– Opportunity cost is a cost which depends upon the availability of alternative in the market. For example, if a restaurant used to buy a chicken from a wholesaler and he got an opportunity of getting a direct chicken from the poultry farm is what an opportunity cost he is saving.
- Incremental cost– As the name suggests the incremental cost is the increase in the cost with the changes in the demand and supply in the market. It also depends on many of the factors of market such as government policies, the economy of the country, inflation effect, etc.
- Book cost– This is a type of cost which is not paid directly but is shown in the profit and loss statement of the company.
- Explicit cost– The cost with a company has paid out for the purchase of any raw material or equipment is known as an explicit cost.
- Implicit cost– The cost which is incurred in the decision making of the company for the growth of the company can be written as an implicit cost. This type of cost is not written in the books of account. For example, a seminar held for increasing the knowledge of the customer is known as an implicit cost.
- Economic cost– This cost is also known as future cars because this cost can be uncertain it cannot be protected today or tomorrow it can be incurred anytime.
Major elements of cost accounting
Our Management assignment help possesses proper knowledge about the elements of the cost accounting with helping them in making perfect and valuable assignments. Some of the Elements of cost accounting are as follows:
- Material cost– This type of cost has been incurred in the purchased of the material for the production of goods and services. There are two types of material cost; direct cost as well as an indirect cost.
- Labor cost– Another type of element of cost accounting is the cost incurred by the labor law on labor. Without labor or worker, none of the machinery can also be work. The abilities the production process becomes easy and convenient with the labor. A factory will also completely dependent upon the machine also higher labor for the switch on and off of the particular machinery.
- Expense cost – One of the major cause incurred by every organization is its expensive cost. All type of expenses which are used in the production, marketing and distribution of the product has to be written in the expense cost. Even administrative activities are also written in the headings of expense cost.
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