The document defines key terms related to cost accounting including:
- Cost, revenue, and profit. Revenue is sales, costs include expenses to generate sales, and profit is revenue minus costs.
- Fixed and variable costs. Fixed costs remain the same regardless of production levels, while variable costs change with production levels.
- The three main financial statements are the income statement, balance sheet, and cash flow statement. The income statement shows profits, the balance sheet assets/liabilities over time, and the cash flow statement tracks cash inflows/outflows.
- Manufacturing costs include direct materials, direct labor, and manufacturing overhead. Non-manufacturing costs are marketing/selling and administrative.
This powerpoint presentation is created by Gyanbikash.com for the students of class nine to ten from their accounting NCTB textbook for multimedia class.
The document discusses various cost concepts including:
- Real cost refers to the actual quantities of factors used in production, while money cost expresses costs in monetary terms.
- Explicit costs are actual expenses paid by the firm, while implicit costs are theoretical expenses not captured in accounting.
- Fixed costs remain constant regardless of output levels, while variable costs fluctuate with output.
- Historical cost refers to the original price paid, while replacement cost is the current price to acquire the same assets.
- Private costs affect individual firms, while social costs impact society as a whole.
This document defines key cost accounting terms and concepts. It discusses that cost is the monetary value of all resources sacrificed to achieve an objective. There are three major elements of cost: materials, labor, and expenses. Costs are further broken down into direct and indirect costs. Direct costs can be traced to a specific cost object, while indirect costs cannot. The document also outlines different levels of costs including prime cost, factory cost, cost of production, and cost of sales. It provides manufacturing companies as an example, detailing the various costs that make up each level.
This document discusses key cost concepts and classifications that are important for financial accounting, predicting cost behaviors, and economic decision making. It covers general cost terms, classifying costs for financial statements as either product or period costs, and cost classifications like fixed, variable, and mixed costs that influence how costs respond to changes in activity levels. Examples are provided to illustrate differential costs, break-even analysis, and marginal cost concepts as applied to make-or-buy and production method decisions.
This Presentation Includes Basic Definition Of Cost. Moreover You Will Also Get Knowledge About How Cost Accounting is Done. You Will Get Knowledge About Various Types Of Costs And Their Examples in Details. Note : This Presentation is Specially Made For The Engineering Student Who Has Subject Named Engineering Economics and Management
This document defines key cost accounting terms and concepts. It discusses the objectives of cost accounting like ascertaining costs, determining selling prices, and assisting management decision making. It distinguishes between cost reduction and cost control and highlights their differences. The importance of cost accounting to businesses is outlined for decision making, cost control, budgeting, efficiency measurement, and price determination. Financial accounting is distinguished from cost accounting. Finally, it describes different bases for classifying costs like functions, controllability, normality, and relevance for decision making.
The document discusses various cost concepts and classifications including:
- Fixed vs direct vs variable costs and functional vs behavioral costs
- Cost classifications such as functional (materials, labor, overhead) and behavioral (fixed, variable) costs
- Cost relationships in a manufacturing company's income statement and how costs flow through work-in-process and finished goods inventory
- Different cost behavior patterns such as total fixed costs, committed fixed costs, total variable costs, total mixed costs, and total step costs
- Methods for separating mixed costs into fixed and variable components
- The impact of computers on manufacturing through technologies like automatic identification systems, computer-aided design, computer-aided manufacturing, flexible manufacturing systems, and computer-integr
The elements of cost include material cost, labor cost, and expenses. Material cost refers to the cost of materials used in production and includes direct material costs which can be traced to a product and indirect material costs which cannot. Labor cost is the cost of employee wages and salaries, including direct labor costs of employees involved in production and indirect labor costs of support staff. Expenses include direct expenses which can be associated with a product and indirect expenses or overheads which cannot, such as factory overhead, administrative overhead, and selling/distribution overhead. Understanding the elements of cost facilitates cost analysis and provides manufacturers with cost information.
This powerpoint presentation is created by Gyanbikash.com for the students of class nine to ten from their accounting NCTB textbook for multimedia class.
The document discusses various cost concepts including:
- Real cost refers to the actual quantities of factors used in production, while money cost expresses costs in monetary terms.
- Explicit costs are actual expenses paid by the firm, while implicit costs are theoretical expenses not captured in accounting.
- Fixed costs remain constant regardless of output levels, while variable costs fluctuate with output.
- Historical cost refers to the original price paid, while replacement cost is the current price to acquire the same assets.
- Private costs affect individual firms, while social costs impact society as a whole.
This document defines key cost accounting terms and concepts. It discusses that cost is the monetary value of all resources sacrificed to achieve an objective. There are three major elements of cost: materials, labor, and expenses. Costs are further broken down into direct and indirect costs. Direct costs can be traced to a specific cost object, while indirect costs cannot. The document also outlines different levels of costs including prime cost, factory cost, cost of production, and cost of sales. It provides manufacturing companies as an example, detailing the various costs that make up each level.
This document discusses key cost concepts and classifications that are important for financial accounting, predicting cost behaviors, and economic decision making. It covers general cost terms, classifying costs for financial statements as either product or period costs, and cost classifications like fixed, variable, and mixed costs that influence how costs respond to changes in activity levels. Examples are provided to illustrate differential costs, break-even analysis, and marginal cost concepts as applied to make-or-buy and production method decisions.
This Presentation Includes Basic Definition Of Cost. Moreover You Will Also Get Knowledge About How Cost Accounting is Done. You Will Get Knowledge About Various Types Of Costs And Their Examples in Details. Note : This Presentation is Specially Made For The Engineering Student Who Has Subject Named Engineering Economics and Management
This document defines key cost accounting terms and concepts. It discusses the objectives of cost accounting like ascertaining costs, determining selling prices, and assisting management decision making. It distinguishes between cost reduction and cost control and highlights their differences. The importance of cost accounting to businesses is outlined for decision making, cost control, budgeting, efficiency measurement, and price determination. Financial accounting is distinguished from cost accounting. Finally, it describes different bases for classifying costs like functions, controllability, normality, and relevance for decision making.
The document discusses various cost concepts and classifications including:
- Fixed vs direct vs variable costs and functional vs behavioral costs
- Cost classifications such as functional (materials, labor, overhead) and behavioral (fixed, variable) costs
- Cost relationships in a manufacturing company's income statement and how costs flow through work-in-process and finished goods inventory
- Different cost behavior patterns such as total fixed costs, committed fixed costs, total variable costs, total mixed costs, and total step costs
- Methods for separating mixed costs into fixed and variable components
- The impact of computers on manufacturing through technologies like automatic identification systems, computer-aided design, computer-aided manufacturing, flexible manufacturing systems, and computer-integr
The elements of cost include material cost, labor cost, and expenses. Material cost refers to the cost of materials used in production and includes direct material costs which can be traced to a product and indirect material costs which cannot. Labor cost is the cost of employee wages and salaries, including direct labor costs of employees involved in production and indirect labor costs of support staff. Expenses include direct expenses which can be associated with a product and indirect expenses or overheads which cannot, such as factory overhead, administrative overhead, and selling/distribution overhead. Understanding the elements of cost facilitates cost analysis and provides manufacturers with cost information.
This document discusses different concepts of cost accounting including costs related to income measurement, profit planning, control, and decision making. It defines key costing terms like product costs, period costs, fixed costs, variable costs, relevant and irrelevant costs, incremental and differential costs, opportunity costs, and imputed costs. The overall purpose is to explain how costs are classified and used for different accounting and business objectives.
This document defines key cost concepts and classifications. It explains that cost is the monetary measure of resources used for production or services. Expenses are expired costs that helped generate revenue, while losses are expired costs with no benefit. Cost centers and cost units are defined as sections or units for which costs can be measured and used for control. Costs are classified in various ways such as direct/indirect, fixed/variable, and product/period costs to aid management decision making. Special costs like sunk, differential and marginal costs are also discussed.
This document provides an overview of different types of costs that are relevant for business. It defines and gives examples of various costs including actual costs, opportunity costs, sunk costs, incremental costs, explicit costs, implicit costs, book costs, out of pocket costs, accounting costs, economic costs, direct costs, indirect costs, controllable costs, non-controllable costs, historical costs, replacement costs, shutdown costs, abandonment costs, urgent costs, business costs, fixed costs, variable costs, total costs, average costs, marginal costs, short run costs, and long run costs. The document is a presentation on costs submitted by a student for their coursework.
This document provides an introduction to economics. It defines economics as the study of how limited resources are used to satisfy unlimited human wants. The objectives of economics are outlined as a high level of employment, price stability, efficiency, an equitable distribution of income, and growth. The flow of goods, services, resources and money payments in a simple economy is described involving households, business firms, and the payments between them. The law of supply and demand and the factors influencing supply and demand are explained. Engineering economics is introduced as analyzing alternatives within a project to compare monetary returns. The concepts of cost, revenue, profit, break even analysis, and margin of safety are defined in the context of economics.
Cost curves show the relationship between a firm's costs and output. There are several types of costs in the short-run and long-run:
1. Short-run costs include total, fixed, variable, average, and marginal costs. Total cost is the sum of fixed and variable costs. Average costs depend on total costs and output. Marginal cost is the change in total cost from a one-unit change in output.
2. Long-run costs have no fixed costs since all inputs are variable. Long-run total and average costs depend on minimum costs of production at different output levels. Long-run marginal cost is the change in total cost from a change in all variable inputs.
3
The document discusses various cost concepts and classifications including:
- Fixed vs variable vs mixed costs and how they behave differently with changes in activity.
- Functional classifications like product, marketing, R&D costs.
- Behavioral classifications like committed vs discretionary fixed costs.
- Responsibility classifications that assign costs to cost centers like departments A, B, C.
- Composition of manufacturing costs including direct materials, direct labor, and manufacturing overhead.
- Methods for separating mixed costs into fixed and variable components like scatterplot, high-low, and least squares.
There are various ways to classify costs. Costs can be classified based on elements like material, labor, and expenses which can be further divided into direct and indirect categories. Costs can also be classified based on the product into direct and indirect costs. Additionally, costs can be classified based on the level of production as either fixed or variable costs. Classification can also occur based on the function like production, administration, selling, and distribution costs. Other bases for classification include controllability and whether the costs are for decision making like shutdown or sunk costs.
This document provides an overview of cost classification. It defines cost and outlines several ways costs can be classified, including by function, nature/elements, ease of traceability, timing, behavior, and relevance to decision making. Specifically, it discusses classifying costs as manufacturing vs non-manufacturing, material vs labor vs expenses, direct vs indirect, variable vs fixed vs mixed. Examples are provided for each classification.
This document discusses concepts related to production and cost analysis. It begins by defining production as a manufacturing process that transforms inputs like raw materials, work in progress, and finished goods. It then discusses different types of production functions including short run and long run production functions. It also discusses cost analysis concepts like actual costs, opportunity costs, sunk costs, and different types of variable, fixed, and average costs. Overall, the document provides an overview of key theoretical concepts in production and cost analysis.
Elements of Cost: Classification of Cost:element wise classification :function wise classification :behavior wise classification: Managerial decision making classification
The document discusses the key factors of production - land, labor, capital and entrepreneurship - and different types of costs. It defines 13 different concepts of costs, including: fixed vs variable costs; historical vs replacement costs; explicit vs implicit costs; avoidable vs unavoidable costs; controllable vs uncontrollable costs; and accounting vs economic costs. The document provides explanations of each cost concept to help with business decision making and understanding financial statements.
This document discusses cost analysis and various cost concepts. It begins by defining cost analysis and its importance in business decision making. It then outlines several types of costs including: opportunity cost, economic cost, accounting cost, private and social costs, incremental and sunk costs, direct and indirect costs, average, marginal and total costs. It also discusses cost-output relationships in the short-run and long-run, factors determining costs, and break-even analysis. The key purpose is to provide an overview of different cost concepts and cost-output relationships that are important for business analysis and decision making.
This document discusses production functions and the concept of returns to scale. It defines a production function as the relationship between a firm's output and inputs. It describes the concepts of total product, average product and marginal product. It explains the short run and long run, and the assumptions of the law of variable proportions. It discusses increasing, decreasing and constant returns to scale, and the causes of each. It also covers internal and external economies of scale, and potential diseconomies of large scale production.
The cost of a product consists of direct material, direct labor, direct expenses, and overhead costs which include factory overhead, selling and distribution overhead, and administrative overhead. Direct costs can be traced to a specific product while indirect costs cannot. Overhead includes various indirect expenses like utilities, rent, and supervision that are allocated across products and services.
Marginal costing is a type of flexible standard costing that separates fixed costs from variable costs. It is a comprehensive method for planning and monitoring costs based on resource drivers. Marginal costing ensures cost fluctuations from changes in operating levels are accurately predicted and incorporated into variance analysis. It has become widely accepted in business over the last 50 years. Marginal cost is the change in total cost from producing one more unit. It includes any additional costs to produce the next unit and varies depending on production levels and time periods considered. The relationship between marginal cost and economies of scale depends on whether average or marginal costs are falling or rising with production. Externalities can cause private and social costs to diverge.
This document provides an overview of key cost and revenue concepts for businesses. It defines accounting costs, opportunity costs, fixed costs, variable costs, average costs, marginal costs, sunk costs, total revenue, average revenue and marginal revenue. It explains how these concepts are used in business decision making and their relationships through diagrams of cost and revenue curves.
This document discusses cost analysis and cost concepts. It provides definitions of cost, including how costs are influenced by factors like output, price of inputs, technology, and managerial efficiency. It then defines and explains various cost concepts used in business like opportunity costs, fixed vs variable costs, sunk costs, etc. Finally, it discusses cost-output relationships and how total, average, and marginal costs change with different levels of output in the short run.
This document discusses various types of engineering costs and methods for estimating costs. It describes fixed and variable, direct and indirect, marginal and average, sunk and opportunity costs. It also discusses recurring and non-recurring costs, incremental costs, cash and book costs, and life-cycle costs. The document then explains methods for estimating costs, including using per-unit models, work breakdown structure (WBS) models, and cost indices. It provides examples to illustrate key cost concepts.
This document discusses the basic concepts of cost and cost elements. It defines cost as the amount of expenditure incurred on a given thing. There are three main elements of cost: material, labor, and expenses. Material includes direct materials like raw materials and indirect materials used for maintenance. Labor includes direct labor involved in production and indirect labor. Expenses include direct expenses for a product and indirect expenses like rent and utilities. Overhead includes the indirect costs of materials, labor, and other expenses. Costs also vary in their nature between being fixed, variable, controllable, and non-controllable.
Cost, volume, profit Analysis. for decision makingHAFIDHISAIDI1
Part 1 discusses different cost behaviors such as fixed, variable, and semi-variable costs. It also covers topics like direct vs indirect costs, marginal costing, and operational gearing.
Part 2 is about cost-volume-profit (CVP) analysis. It discusses how CVP is used to determine the break-even point and analyze how costs and profits are affected by changes in sales volume. The assumptions of CVP analysis and formulas for calculating the break-even point in terms of units and sales volume are also presented.
This document provides an overview of economics concepts for engineers, including:
1. Economic decision making involves factors like price, availability, and quality of raw materials. Life cycle costing adds up all costs of an asset over its lifetime.
2. Fixed costs do not change with production levels, like rent or insurance. Variable costs change based on production, like materials.
3. Opportunity cost is the potential benefit missed from choosing one alternative over another. It represents the return that could have been earned by taking the next best alternative.
4. Life cycle costing adds up all costs associated with an asset from purchase to disposal, excluding salvage value. It provides a more accurate total cost estimate than initial
This document discusses different concepts of cost accounting including costs related to income measurement, profit planning, control, and decision making. It defines key costing terms like product costs, period costs, fixed costs, variable costs, relevant and irrelevant costs, incremental and differential costs, opportunity costs, and imputed costs. The overall purpose is to explain how costs are classified and used for different accounting and business objectives.
This document defines key cost concepts and classifications. It explains that cost is the monetary measure of resources used for production or services. Expenses are expired costs that helped generate revenue, while losses are expired costs with no benefit. Cost centers and cost units are defined as sections or units for which costs can be measured and used for control. Costs are classified in various ways such as direct/indirect, fixed/variable, and product/period costs to aid management decision making. Special costs like sunk, differential and marginal costs are also discussed.
This document provides an overview of different types of costs that are relevant for business. It defines and gives examples of various costs including actual costs, opportunity costs, sunk costs, incremental costs, explicit costs, implicit costs, book costs, out of pocket costs, accounting costs, economic costs, direct costs, indirect costs, controllable costs, non-controllable costs, historical costs, replacement costs, shutdown costs, abandonment costs, urgent costs, business costs, fixed costs, variable costs, total costs, average costs, marginal costs, short run costs, and long run costs. The document is a presentation on costs submitted by a student for their coursework.
This document provides an introduction to economics. It defines economics as the study of how limited resources are used to satisfy unlimited human wants. The objectives of economics are outlined as a high level of employment, price stability, efficiency, an equitable distribution of income, and growth. The flow of goods, services, resources and money payments in a simple economy is described involving households, business firms, and the payments between them. The law of supply and demand and the factors influencing supply and demand are explained. Engineering economics is introduced as analyzing alternatives within a project to compare monetary returns. The concepts of cost, revenue, profit, break even analysis, and margin of safety are defined in the context of economics.
Cost curves show the relationship between a firm's costs and output. There are several types of costs in the short-run and long-run:
1. Short-run costs include total, fixed, variable, average, and marginal costs. Total cost is the sum of fixed and variable costs. Average costs depend on total costs and output. Marginal cost is the change in total cost from a one-unit change in output.
2. Long-run costs have no fixed costs since all inputs are variable. Long-run total and average costs depend on minimum costs of production at different output levels. Long-run marginal cost is the change in total cost from a change in all variable inputs.
3
The document discusses various cost concepts and classifications including:
- Fixed vs variable vs mixed costs and how they behave differently with changes in activity.
- Functional classifications like product, marketing, R&D costs.
- Behavioral classifications like committed vs discretionary fixed costs.
- Responsibility classifications that assign costs to cost centers like departments A, B, C.
- Composition of manufacturing costs including direct materials, direct labor, and manufacturing overhead.
- Methods for separating mixed costs into fixed and variable components like scatterplot, high-low, and least squares.
There are various ways to classify costs. Costs can be classified based on elements like material, labor, and expenses which can be further divided into direct and indirect categories. Costs can also be classified based on the product into direct and indirect costs. Additionally, costs can be classified based on the level of production as either fixed or variable costs. Classification can also occur based on the function like production, administration, selling, and distribution costs. Other bases for classification include controllability and whether the costs are for decision making like shutdown or sunk costs.
This document provides an overview of cost classification. It defines cost and outlines several ways costs can be classified, including by function, nature/elements, ease of traceability, timing, behavior, and relevance to decision making. Specifically, it discusses classifying costs as manufacturing vs non-manufacturing, material vs labor vs expenses, direct vs indirect, variable vs fixed vs mixed. Examples are provided for each classification.
This document discusses concepts related to production and cost analysis. It begins by defining production as a manufacturing process that transforms inputs like raw materials, work in progress, and finished goods. It then discusses different types of production functions including short run and long run production functions. It also discusses cost analysis concepts like actual costs, opportunity costs, sunk costs, and different types of variable, fixed, and average costs. Overall, the document provides an overview of key theoretical concepts in production and cost analysis.
Elements of Cost: Classification of Cost:element wise classification :function wise classification :behavior wise classification: Managerial decision making classification
The document discusses the key factors of production - land, labor, capital and entrepreneurship - and different types of costs. It defines 13 different concepts of costs, including: fixed vs variable costs; historical vs replacement costs; explicit vs implicit costs; avoidable vs unavoidable costs; controllable vs uncontrollable costs; and accounting vs economic costs. The document provides explanations of each cost concept to help with business decision making and understanding financial statements.
This document discusses cost analysis and various cost concepts. It begins by defining cost analysis and its importance in business decision making. It then outlines several types of costs including: opportunity cost, economic cost, accounting cost, private and social costs, incremental and sunk costs, direct and indirect costs, average, marginal and total costs. It also discusses cost-output relationships in the short-run and long-run, factors determining costs, and break-even analysis. The key purpose is to provide an overview of different cost concepts and cost-output relationships that are important for business analysis and decision making.
This document discusses production functions and the concept of returns to scale. It defines a production function as the relationship between a firm's output and inputs. It describes the concepts of total product, average product and marginal product. It explains the short run and long run, and the assumptions of the law of variable proportions. It discusses increasing, decreasing and constant returns to scale, and the causes of each. It also covers internal and external economies of scale, and potential diseconomies of large scale production.
The cost of a product consists of direct material, direct labor, direct expenses, and overhead costs which include factory overhead, selling and distribution overhead, and administrative overhead. Direct costs can be traced to a specific product while indirect costs cannot. Overhead includes various indirect expenses like utilities, rent, and supervision that are allocated across products and services.
Marginal costing is a type of flexible standard costing that separates fixed costs from variable costs. It is a comprehensive method for planning and monitoring costs based on resource drivers. Marginal costing ensures cost fluctuations from changes in operating levels are accurately predicted and incorporated into variance analysis. It has become widely accepted in business over the last 50 years. Marginal cost is the change in total cost from producing one more unit. It includes any additional costs to produce the next unit and varies depending on production levels and time periods considered. The relationship between marginal cost and economies of scale depends on whether average or marginal costs are falling or rising with production. Externalities can cause private and social costs to diverge.
This document provides an overview of key cost and revenue concepts for businesses. It defines accounting costs, opportunity costs, fixed costs, variable costs, average costs, marginal costs, sunk costs, total revenue, average revenue and marginal revenue. It explains how these concepts are used in business decision making and their relationships through diagrams of cost and revenue curves.
This document discusses cost analysis and cost concepts. It provides definitions of cost, including how costs are influenced by factors like output, price of inputs, technology, and managerial efficiency. It then defines and explains various cost concepts used in business like opportunity costs, fixed vs variable costs, sunk costs, etc. Finally, it discusses cost-output relationships and how total, average, and marginal costs change with different levels of output in the short run.
This document discusses various types of engineering costs and methods for estimating costs. It describes fixed and variable, direct and indirect, marginal and average, sunk and opportunity costs. It also discusses recurring and non-recurring costs, incremental costs, cash and book costs, and life-cycle costs. The document then explains methods for estimating costs, including using per-unit models, work breakdown structure (WBS) models, and cost indices. It provides examples to illustrate key cost concepts.
This document discusses the basic concepts of cost and cost elements. It defines cost as the amount of expenditure incurred on a given thing. There are three main elements of cost: material, labor, and expenses. Material includes direct materials like raw materials and indirect materials used for maintenance. Labor includes direct labor involved in production and indirect labor. Expenses include direct expenses for a product and indirect expenses like rent and utilities. Overhead includes the indirect costs of materials, labor, and other expenses. Costs also vary in their nature between being fixed, variable, controllable, and non-controllable.
Cost, volume, profit Analysis. for decision makingHAFIDHISAIDI1
Part 1 discusses different cost behaviors such as fixed, variable, and semi-variable costs. It also covers topics like direct vs indirect costs, marginal costing, and operational gearing.
Part 2 is about cost-volume-profit (CVP) analysis. It discusses how CVP is used to determine the break-even point and analyze how costs and profits are affected by changes in sales volume. The assumptions of CVP analysis and formulas for calculating the break-even point in terms of units and sales volume are also presented.
This document provides an overview of economics concepts for engineers, including:
1. Economic decision making involves factors like price, availability, and quality of raw materials. Life cycle costing adds up all costs of an asset over its lifetime.
2. Fixed costs do not change with production levels, like rent or insurance. Variable costs change based on production, like materials.
3. Opportunity cost is the potential benefit missed from choosing one alternative over another. It represents the return that could have been earned by taking the next best alternative.
4. Life cycle costing adds up all costs associated with an asset from purchase to disposal, excluding salvage value. It provides a more accurate total cost estimate than initial
Cost-volume-profit (CVP) analysis is used to determine how changes in costs and sales volume affect a company's profits. It requires identifying all costs as either variable or fixed. CVP analysis explores the relationship between costs, revenues, and activity level to measure how costs and profits vary with sales volume. It is used for forecasting profits, budget planning, pricing decisions, determining sales mix, and more. The three elements of CVP are costs, volume, and profit. The break-even point is the sales volume where total revenue equals total costs. Relevant costs must differ between alternatives and affect the decision. Sunk costs do not affect decisions as they cannot be changed.
The document discusses various types of costs including direct costs, indirect costs, fixed costs, variable costs, and mixed costs. It defines costs and provides examples of each cost classification. It also covers topics like contribution margin, break-even point, and how they are calculated using equations and graphical methods. The document is intended to educate people on finance and accounting concepts related to costs.
Cost is the measurement of resources expended to obtain an object or complete an activity, usually expressed in monetary terms. There are different types of costs including product and period costs, variable and fixed costs, direct and indirect costs. Costs are also classified by their purpose such as differential costs and sunk costs. Manufacturing overhead costs from a shared facility can be allocated to products using different allocation bases like units produced, direct labor hours, or machine hours.
The key users of accounting information include investors, lenders, regulators and rating agencies, security analysts, and management. Investors and lenders rely on accounting information to assess the return and risk of their investments and loans. Regulators, rating agencies, and analysts use accounting data to evaluate companies and provide guidance to investors. Management utilizes accounting reports to review financial performance and solvency, ensure efficient resource usage, and inform strategic decision making. Overall, accounting aims to meet the common information needs of these various user groups for financial decision making purposes.
economics ppt for btech and basic introduction to engineeringCITDiplomaMadhyamgra
The document discusses key economic concepts related to costs and revenues for businesses. It defines variable costs as costs that change with production quantity, such as materials and labor, while fixed costs do not change. Marginal cost is the change in total cost from producing one more unit, and is used to determine the optimal production quantity where marginal cost equals marginal revenue. Marginal revenue is the change in total revenue from selling one more unit, and may decrease with higher production in imperfectly competitive markets as price must fall to sell additional units. Together, comparing marginal cost and marginal revenue helps businesses maximize profits.
This document discusses different types of costs that producers consider, including total, average, and marginal costs. It defines fixed costs as those that do not vary with output, and variable costs as those that do vary with output. Total costs are the sum of fixed and variable costs. The document provides examples of accounting costs, which are retrospective, versus economic costs, which consider future and opportunity costs. It also distinguishes between explicit costs, which are actual expenses, and implicit costs, which are the value of owned inputs. Finally, it outlines the components of short-run cost analysis, including formulas for average fixed cost, average variable cost, average total cost, and marginal cost.
This document provides an introduction to basic cost accounting terminology and concepts. It defines key terms like direct and indirect costs, fixed and variable costs, cost objects and behaviors. It also discusses how costs flow through a manufacturing company, including inventory accounts. Finally, it notes that costs are defined differently depending on the context, like financial reporting versus government contracting.
Marginal costing is a method used to determine the cost of increasing or decreasing production. It includes both fixed and variable costs, with fixed costs only included if production is being increased. The marginal cost is calculated as the change in total cost from a one unit change in production. Absorption costing is an accounting method that allocates all production costs, including fixed costs, to inventory. This increases the reported value of inventory and costs per unit. Key steps include developing cost pools, determining usage, and calculating allocation rates to distribute costs to each unit produced.
This document provides information on cost accounting, management accounting, cost behavior analysis, budgeting, and related concepts. It defines key terms like cost center, revenue center, and discusses topics like standard costing, cost accumulation methods, and financial statements. It also summarizes cost-volume-profit analysis using both the contribution margin and break-even approaches to determine the sales volume needed to reach the break-even point. Finally, it defines what a budget is, the purposes of budgetary control, and introduces the concept of zero-base budgeting.
Costs Of Production Micro Economics ECO101Sabih Kamran
This document discusses the costs of production for a firm. It begins by defining a firm and its goal of profit maximization. It explains that a firm faces constraints from technology, information, and markets. It also discusses the five basic decisions a firm must make: what and how much to produce, how to produce, how to organize workers, how to market and price products, and what to produce internally vs externally.
The document then explains the differences between short-run and long-run time frames. In the short-run, capital is fixed while variable inputs can change, while in the long-run all inputs are variable. It introduces the concepts of total, average, and marginal costs. Finally, it discusses how
This document discusses cost concepts relevant for production planning and decision making. It defines different types of costs such as explicit vs implicit costs, direct vs indirect costs, private vs social costs, relevant vs irrelevant costs, economic vs accounting costs, separable vs common costs, and fixed vs variable costs. It also explores the relationship between production and costs, discussing how cost functions are related to production functions and how average and marginal costs are related to average and marginal products. Short-run cost functions are examined, showing how total, average, and marginal costs change at different output levels when some factors are fixed in the short-run.
This document provides an overview of a lecture on management accounting and cost concepts. It defines management accounting and distinguishes it from financial accounting. It covers basic terms in management accounting like unit cost. It identifies the three basic manufacturing cost categories as direct materials, direct labor, and manufacturing overhead. It discusses classifying costs by behavior as variable, fixed or mixed costs. It also covers other cost classifications like by traceability, function, and relevance to decision making.
This document discusses cost concepts and break-even analysis. It defines different types of costs such as explicit, implicit, fixed, and variable costs. It also explains the concepts of normal profit, incremental costs, sunk costs, and private and social costs. The document then provides an introduction to break-even analysis, discussing how to calculate the break-even point, total revenue, total costs, and profit or loss. It demonstrates using an example how to determine the number of units that must be sold to break even. The document concludes by discussing the uses and limitations of break-even analysis.
This document discusses various cost accounting concepts including:
- Non-manufacturing or period costs that are incurred outside of production and not needed to transform materials, including selling and administrative expenses.
- Cost classifications used for financial statements including product costs (direct materials, labor, manufacturing overhead) and period costs (selling and administrative).
- Cost behavior classifications including fixed costs that remain constant, variable costs that vary with activity, and semi-variable (mixed) costs that vary but not proportionately.
- Controllable costs that can be influenced by a responsibility center versus uncontrollable costs that cannot be influenced.
The document discusses various users of accounting information including investors, lenders, regulators and rating agencies, security analysts, and management. It notes that investors and lenders are the most obvious users as they need information to assess returns on investments and ability to repay loans. Regulators, rating agencies, and analysts also use accounting information to assess companies and provide analysis to help other users. Management uses the information for decision making, ensuring efficient resource use, and reviewing profitability and solvency.
The document discusses key concepts in managerial economics including:
- Accounting costs consider explicit costs while economic costs consider both explicit and implicit costs.
- Fixed costs do not vary with production while variable costs do vary with production. Common fixed costs include rent and salaries while common variable costs are raw materials and labor.
- Average cost is total cost divided by output while marginal cost is the change in total cost from producing one additional unit of output.
- The relationship between average cost and marginal cost is that when marginal cost is diminishing, total cost increases at a diminishing rate, and when marginal cost is rising, total cost increases at an increasing rate. The lowest point of marginal cost corresponds to the minimum point of
Direct materials used, direct labor cost, prepare statement of wip, prepare income statement. The document provides information on materials purchased and on hand at the beginning and end of the year, as well as direct labor hours worked and costs. It requests the calculation of direct materials used, direct labor cost, and the preparation of a statement of work in process and income statement.
This document discusses different types of costs and their classification. It begins by defining direct and indirect costs, as well as fixed and variable costs. Direct costs include direct materials, direct labor, and direct expenses that can be traced to a specific product. Indirect costs cannot be traced to a specific product. Fixed costs remain constant regardless of production volume, while variable costs change in proportion to production volume.
It then discusses how costs are classified for different purposes, such as stock valuation, decision-making, and control. For stock valuation, costs are classified as product costs (included in inventory valuation) or period costs (expensed immediately). For decision-making, costs are classified as relevant (those that change with a decision
The document discusses project management concepts including defining a project, the differences between projects and regular work, and what project management entails. It describes the typical project life cycle which includes initiation, planning, execution, and closing phases. Each phase is discussed in detail including typical activities in each phase. It also discusses the role of the project manager and factors for project success versus failure such as planning, communication, resources, and clear goals.
This document provides a rubric for grading thesis and research manuscripts submitted to the Department of Health & Human Performance at Texas A&M University-Commerce. It evaluates documents on criteria such as the significance of the topic, clarity of purpose and research questions, thoroughness of the literature review, appropriateness of the research methods, accuracy and insightfulness of the results and discussion, proper formatting, and demonstration of knowledge in the field of study. Documents are graded on a scale of 1 to 4, with 1 being "Beginning" and 4 being "Mastery," to indicate their readiness to be submitted for publication or professional presentation.
This document provides a grading rubric for dissertation research. It outlines the key elements that a dissertation committee will use to evaluate a student's dissertation proposal and final dissertation. These include sections on the introduction, literature review, research methodology, findings, discussion, and overall writing style and organization. Ratings of 3 or above are considered satisfactory. Students should use this rubric to guide the structure and content of their dissertation to ensure they sufficiently address the important evaluation areas.
The document discusses developing a good problem statement and research proposal. It covers identifying problems versus symptoms, using the 5 whys technique to get to the root cause, developing a problem statement with research objectives and questions, and outlines of a research proposal including title, abstract, introduction, literature review, methodology, and timeline. The learning objectives are to develop a problem statement and research proposal.
1. The document discusses business research and its importance for managers.
2. It defines applied and basic research and provides examples of each.
3. Managers should understand research to identify problems, interact with researchers, and make informed decisions using research findings.
This document discusses scientific research methodology. It begins by defining scientific research as a systematic, data-driven process to solve problems. It then explains the key aspects of scientific research, including purposiveness, rigor, testability, replicability, precision/confidence, objectivity, generalizability, and parsimony. The document also introduces the hypothetico-deductive method, a 7-step process involving identifying a problem, developing hypotheses, collecting data, analyzing data, and interpreting results. An example is provided to illustrate how this process is applied to a case study of low usage of a new MIS system by managers.
This document defines common accounting terms, acronyms, and concepts. It explains key terms like accounts receivable, accounts payable, assets, liabilities, equity, expenses, net income, and cash flow. It also defines financial reports such as the balance sheet, profit and loss statement, and general ledger. Overall, the document provides definitions for 26 basic accounting concepts, terms, and reports.
This document provides an introduction and background to a proposed DBA thesis that will examine the impact of leadership styles on organizational performance in the oil and gas sector in Egypt. The study aims to determine if laissez-faire, transactional, or transformational leadership styles have a significant impact on company performance. It hypothesizes that one of the styles may positively influence outstanding performance. The research could help transfer effective leadership traits to underperforming companies to enhance the overall industry. The document outlines the problem statement, research questions, hypotheses, limitations, and provides an overview of the relevant literature on leadership theories and factors that will be examined.
This document provides guidance on assessing and managing social performance in microfinance. It discusses conceptualizing social performance as going beyond just impact to also consider how an organization achieves its social goals. It recommends developing social performance management systems to monitor progress at different levels, from intent and design to outputs, outcomes and impacts. The document outlines tools and methods for assessment and provides examples of good practice from microfinance organizations that have implemented social performance management. It concludes with recommendations for how IFAD can support rural finance institutions in strengthening their social performance management capacity.
The impact of information technology on organizational performanceMohamed Abouelmagd
Here are the key findings from previous studies on the impact of information technology on organizational performance:
1. Daniel Kinuthia Wanjiru (2014) studied the oil and gas sector in Kenya and found that IT adoption leads to time reductions and quality improvements in procurement processes, rather than direct cost reductions. The study also found that the company had only adopted basic ICT applications and not more advanced e-business solutions.
2. Loveman (1994) examined IT spending and productivity in the manufacturing sector in the US and found no evidence that IT investments led to increases in firm performance.
3. Weill (1990) studied transactional vs strategic IT investments across sectors and found that transactional IT had a positive impact
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
How to Add Chatter in the odoo 17 ERP ModuleCeline George
In Odoo, the chatter is like a chat tool that helps you work together on records. You can leave notes and track things, making it easier to talk with your team and partners. Inside chatter, all communication history, activity, and changes will be displayed.
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
This presentation was provided by Steph Pollock of The American Psychological Association’s Journals Program, and Damita Snow, of The American Society of Civil Engineers (ASCE), for the initial session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session One: 'Setting Expectations: a DEIA Primer,' was held June 6, 2024.
Physiology and chemistry of skin and pigmentation, hairs, scalp, lips and nail, Cleansing cream, Lotions, Face powders, Face packs, Lipsticks, Bath products, soaps and baby product,
Preparation and standardization of the following : Tonic, Bleaches, Dentifrices and Mouth washes & Tooth Pastes, Cosmetics for Nails.
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
বাংলাদেশের অর্থনৈতিক সমীক্ষা ২০২৪ [Bangladesh Economic Review 2024 Bangla.pdf] কম্পিউটার , ট্যাব ও স্মার্ট ফোন ভার্সন সহ সম্পূর্ণ বাংলা ই-বুক বা pdf বই " সুচিপত্র ...বুকমার্ক মেনু 🔖 ও হাইপার লিংক মেনু 📝👆 যুক্ত ..
আমাদের সবার জন্য খুব খুব গুরুত্বপূর্ণ একটি বই ..বিসিএস, ব্যাংক, ইউনিভার্সিটি ভর্তি ও যে কোন প্রতিযোগিতা মূলক পরীক্ষার জন্য এর খুব ইম্পরট্যান্ট একটি বিষয় ...তাছাড়া বাংলাদেশের সাম্প্রতিক যে কোন ডাটা বা তথ্য এই বইতে পাবেন ...
তাই একজন নাগরিক হিসাবে এই তথ্য গুলো আপনার জানা প্রয়োজন ...।
বিসিএস ও ব্যাংক এর লিখিত পরীক্ষা ...+এছাড়া মাধ্যমিক ও উচ্চমাধ্যমিকের স্টুডেন্টদের জন্য অনেক কাজে আসবে ...
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
2. Cost
Cost is the value of money that has been used up to produce something or deliver a service
Revenue
Is the value of all sales of goods and services recognized by a company in a period
Profit
describes the financial benefit realized when revenue generated from a business activity exceeds the expenses, costs, and taxes
involved in sustaining the activity in question. ... Profit is calculated as total revenue less total expenses
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Important Definitions
3. Fixed costs
Fixed costs are predetermined expenses that remain the same throughout a
specific period. These overhead costs do not vary with output or how the
business is performing.
Variable costs
Variable costs change directly with the output – when output is zero, the variable
cost will be zero. The total variable cost to a business is calculated by multiplying
the total quantity of output with the variable cost per unit of output.
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Important Definitions
4. Variable Cost:
Are costs that changed in total in proportion to changes in the related level of production. But it’s remains constant (fixed)
per unit.
suppose that in order to make one suit, required 5 meter of cloth and the company purchase the meter in 2 pounds.
So, direct material for make one suit = 5 meter * 2 pounds = 10 pounds
Production volume total variable cost variable cost per unit
1 10 10
5 50 10
100 1000 10
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5. Fixed Cost:
Are costs that remains unchanged (constant) in total regardless of changes in the related level of production. But fixed cost per
unit decreases with the increase in the volume of production.
Example: factory rental
Suppose that the company pay 10,000 LE for factory rental.
Production level total fixed cost fixed cost per unit
2,000 10,000 5
4,000 10,000 2,5
10,000 10,000 1
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Example
Earl’s Biking Company manufactures and sells bikes. Each bike costs $40 to make, and the company’s fixed costs
are $5000. In addition,
Earl knows that the price of each bike comes from the price function (P(X) = 300 -2X)
Find:
1. The company’s revenue function, R(x).
2. The company’s cost function, C(x).
3. The company’s profit function, P(x).
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Example
1) Revenue is equal to the number of units sold times the price per unit. To obtain the
revenue function, multiply the output level by the price function.
2) A business’ costs include the fixed cost of $5000 as well as the variable cost of $40
per bike. To obtain the cost function, add fixed cost and variable cost together.
3) The profit a business makes is equal to the revenue it takes in minus what it spends
as costs. To obtain the profit function, subtract costs from revenue.
8. Accounting
Accounting is the recording of financial transactions along with storing, sorting, retrieving, summarizing, and presenting the
results in various reports and analyses. Accounting is also a field of study and profession dedicated to carrying out those tasks.
Financial Accounting:
Financial accounting is the field of accounting concerned with the summary, analysis and reporting of financial transactions
related to a business. This involves the preparation of financial statements available for public use
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Important Definitions
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Financial Statements
The three financial statements are:
(1) Income Statement
(2) Balance Sheet
(3) Cash Flow Statement.
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Income Statement
Often, the first place an investor or analyst will look is the
income statement. The income statement shows the
performance of the business throughout each period,
displaying sales revenue at the very top. The statement
then deducts the cost of goods sold (COGS) to find gross
profit. From there, the gross profit is affected by other
operating expenses and income, depending on the nature
of the business, to reach net income at the bottom – “the
bottom line” for the business.
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Balance Sheet
The balance sheet displays the company’s assets,
liabilities, and shareholders’ equity at a point in time. As
commonly known, assets must equal liabilities plus
equity. The asset section begins with cash and
equivalents, which should equal the balance found at
the end of the cash flow statement. The balance sheet
then displays the changes in each major account from
period to period. Net income from the income
statement flows into the balance sheet as a change in
retained earnings (adjusted for payment of dividends).
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Cash Flow Statement
The cash flow statement then takes net income and adjusts it for any non-cash expenses.
Then, using changes in the balance sheet, usage and receipt of cash is found. The cash flow
statement displays the change in cash per period, as well as the beginning balance and ending
balance of cash.
Key features:
• Shows the increases and decreases in cash
• Expressed over a period of time, an accounting period (i.e., 1 year, 1 quarter, etc.)
• Show pure cash movements
• Has three sections: cash from operations, cash used in investing, and cash from financing
• Shows the net change in the cash balance from start to end of the period
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Financial Ratios
Standardize financial information for comparisons
Used to highlight weaknesses and strengths
Evaluate current operations
Compare performance with past performance
Compare performance against other firms or industry standards
Study the efficiency of operations
14. Manufacturing Costs
Manufacturing Costs:
Most manufacturing companies divide manufacturing costs
into three broad categories:
Direct Materials
Direct Labor
Manufacturing overhead.
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15. 1
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Direct Materials:
are those materials that become an integral part of the
finished product and that can be easily traced to it.
For example:
Wood is the direct material in a piece of wooden furniture.
Materials that are not significant on a per-unit basis and
cannot be easily traced to the finished product are termed
indirect materials. For example, glue, nails, and screws.
16. 1
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Direct Labor:
The term direct labor is reserved for those labor
costs that can be easily traced to individual units
of product.
Labor costs that are not significant on a per-unit
basis and cannot be easily traced to the finished
product are termed indirect labor.
Indirect labor includes the labor costs of
supervisors, janitors, and night security guards.
17. 1
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Manufacturing Overhead:
The third elements of manufacturing cost, includes all costs of manufacturing except direct material and direct
labor. Manufacturing overhead includes items such as indirect material, indirect labor, depreciation, heat and
light, maintenance and repairs on production equipment, and insurance on manufacturing facilities.
18. 2
Manufacturing Cost = Direct material + Direct labor + Overhead
D.M D. L O.H
Prime Cost = D.M + D.L
Conversion Cost = D. L + O.H
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19. 1
Non-manufacturing Costs:
Marketing or Selling Costs: included all costs necessary to secure
customer orders and get the finished product into the hands of the
customer. Examples of marketing costs included advertising, shipping,
sales commissions, sales salaries, and cost of finished goods
warehouses.
Administrative Costs: included all executive and organizational costs
associated with general management of an organization rather than
with manufacturing, marketing, or selling. Examples of administrative
costs include executive compensation, general accounting, secretarial,
and public relations.
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20. 1
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Example:
The following are some cost data for a manufacturing company for the month of January:
Raw material used in production 380,000
Direct labor 120,000
Indirect material 5,000
Supervisor salaries 100,000
Insurance- factory 10,000
Machine rental 20,000
Sales salaries 50,000
Depreciation – factory 15,000
Required: determine prime cost, conversion cost, and total manufacturing cost
21. Mixed Costs:
Is one that contains both variable cost and fixed cost such as maintenance cost.
Mixed costs equation:
Y = a + b x
In this equation:
y = the total mixed cost
a = the total fixed cost
b = the variable cost per unit
x = the level of production
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22. Analyze a mixed cost using the high-low method:
The high-low method is an estimation technique which relies on the relationship between the highest and lowest
observed values of cost.
Cost at the high production level – Cost at the low production level
Variable cost per unit =
High production level - low production level
Total fixed cost = total cost – total variable cost
Total fixed cost = total cost – ( variable cost per unit * production level)
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23. Example:
The following information has been taken from the ledger accounts of
XY company for the past 4 years:
Year production level total maintenance cost
2000 6,000 220,000
2001 5,000 200,000
2002 8,000 260,000
2003 10,000 300,000
required:
1- using high-low method, determine the cost equation for
maintenance cost.
2- Using the cost equation for maintenance cost to determine the
estimated maintenance cost for 12,000 production units.
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24. solution
1
Cost at the high production level – Cost at the low production level
Variable cost per unit =
High production level - low production level
300,000 – 200,000
Variable cost per unit = = 20 pound
10,000 – 5,000
then choice any production level and implement the second equation, such as the
high production level:
Total fixed cost = total cost – ( variable cost per unit * production level)
= 300,000 – ( 20 * 10,000) = 100,000
the cost equation for maintenance cost:
y = 100,000 + 20 x
The estimated maintenance cost for 12,000 production unit:
Y = 100,000 + 20 * 12,000 = 340,000
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26. Project Cost Management
• Project Cost Management includes the processes involved in planning, estimating, budgeting, financing, funding,
managing, and controlling costs so that the project can be completed within the approved budget.
ID Process Definition
1 Plan Cost Management The process that establishes the policies, procedures, and
documentation for planning, managing, expending, and controlling
project costs.
2 Estimate Costs The process of developing an approximation of the monetary
resources needed to complete project activities.
3 Determine Budget The process of aggregating the estimated costs of individual activities
or work packages to establish an authorized cost baseline.
4 Control Costs The process of monitoring the status of the project to update the
project costs and managing changes to the cost baseline.
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27. Project Cost Management
• Types of Costs
Type Description Example
Fixed Costs Project costs that remain constant regardless to the phase or output. Set‐up
Variable Costs Project costs that vary in relation to the output. Materials,
supplies
Direct Costs Costs that are directly attributable to the work of the project Training,
travel
Indirect Costs Costs that are directly attributable to more than one project (overhead) Taxes
Cost reserves Amount of money needed above the estimate to reduce risk of overruns of
project objectives to a level acceptable to the organization
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