COST ACCOUNTING
COST MANAGEMENT SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is used for calculating the estimated cost of manufactured items under different scenarios.
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It is used for Receipt Accounting.
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It is where you define your Cost Accounting policies.
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It is where you define which cost method you want to use for the cost component to cost element mapping.
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Detailed explanation-1: -Cost may be classified according to their nature, i.e., material, labour and expenses and a number of other characteristics. The same cost figures are classified according to different ways of costing depending upon the purpose to be achieved and requirements of a particular concern.
Detailed explanation-2: -Again, we can bifurcate these elements of cost into two categories such as Direct Material and Indirect Material, Direct Labour and Indirect Labour, Direct Expenses and Indirect Expenses.
Detailed explanation-3: -So basically there are three broad categories as per this classification, namely Labor Cost, Materials Cost and Expenses. These heads make it easier to classify the costs in a cost sheet. They help ascertain the total cost and determine the cost of the work-in-progress.