Cost Objective: It may be defined as any activity for which a separate measurement of costs is desired.
Cost Unit: It is defined as a unit of quantity of product, service or time (or a combination of these) in relation to which costs may be ascertained or expressed.Choice of cost unit depends upon the nature of the product manufactured, methods of production and trade practices.
Average Cost: An average cost is the cost of a product unit computed by dividing total cost by the number of units produced.
Conversion Cost: Conversion cost is the cost of production excluding direct materials, but including wastage in the direct material. It is total of direct labour,direct expenses and works overheads.
Variable Cost: If a given cost changes in total in direct proportion to changes in an activity it is variable cost.
Fixed Cost: Fixed cost remains unchanged for a given time period despite fluctuations in activity
Cost Center: Cost center has been defined as a location, person or items of equipment (or group of these) for which costs may be ascertained and used for the purpose of cost control. Cost Centre is a segment of a plant or in some case an entire plant, which is treated as functional units for the purpose of applying process overhead.
Productive Cost Center: A Productive cost center is directly engaged in productive activity and may consist of similar items of equipments.
Service Cost Center: Service cost centres are those cost centres, which are not directly engaged in productive activities, but provide services to productive cost centres so that production work may be carried out.
Cost Accumulation: It is the collection of cost data in an organized way in an accounting system.
Profit Center: Different cost centers when taken into a group headed by an individual or manager, who will be fully responsible for all cost, revenues and profitabilities of operation, the group is known as profit center.
Cost Unit: It is defined as a unit of quantity of product, service or time (or a combination of these) in relation to which costs may be ascertained or expressed.Choice of cost unit depends upon the nature of the product manufactured, methods of production and trade practices.
Average Cost: An average cost is the cost of a product unit computed by dividing total cost by the number of units produced.
Conversion Cost: Conversion cost is the cost of production excluding direct materials, but including wastage in the direct material. It is total of direct labour,direct expenses and works overheads.
Variable Cost: If a given cost changes in total in direct proportion to changes in an activity it is variable cost.
Fixed Cost: Fixed cost remains unchanged for a given time period despite fluctuations in activity
Cost Center: Cost center has been defined as a location, person or items of equipment (or group of these) for which costs may be ascertained and used for the purpose of cost control. Cost Centre is a segment of a plant or in some case an entire plant, which is treated as functional units for the purpose of applying process overhead.
Productive Cost Center: A Productive cost center is directly engaged in productive activity and may consist of similar items of equipments.
Service Cost Center: Service cost centres are those cost centres, which are not directly engaged in productive activities, but provide services to productive cost centres so that production work may be carried out.
Cost Accumulation: It is the collection of cost data in an organized way in an accounting system.
Profit Center: Different cost centers when taken into a group headed by an individual or manager, who will be fully responsible for all cost, revenues and profitabilities of operation, the group is known as profit center.
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