COST ACCOUNTING
COST MANAGEMENT SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Identify three characteristics of cost component to cost element mapping.
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You cannot modify, duplicate, or create user-defined cost components.
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You can only define one cost component to cost element mapping for an installation.
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It is one of the attributes you define as part of your cost profile definitions.
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It is user-defined.
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It lets you define how cost component level costs will map into cost elements.
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Explanation:
Detailed explanation-1: -A cost is composed of three elements – Material, Labour and Expenses. Each of these three elements can be direct and indirect, i.e., direct materials and indirect materials, direct labour and indirect labour, direct expenses and indirect expenses.
Detailed explanation-2: -Examples of cost components are purchase order item price, material, freight, tax, and overhead.
Detailed explanation-3: -Our first one calculating the cost of product services and and then cost objects. Second one is obtaining information for planning Yeah and control also for performance evaluation and for performance evaluation. The third one is uh analyzing the relevant information.
There is 1 question to complete.