- prime cost
- factory cost
- cost of production
- total cost
PRIME COST
it
refers to the total of three important elements of cost such as,
direct material, direct labour,direct expenses, the aggregate of all
direct element of cost is collectively known as prime cost.
PRIME
COST = DM + DL + DE
FACTORY COST
total
of prime cost and factory overhead, it is the actual cost incurred
for conversion of raw material in to finished goods.
FACTORY
COST/ WORK COST = PRIME COST + FACTORY OVER HEAD
COST OF PRODUCTION
it
includes all expenses incurred up to the production. This is the
aggregate of work cost and office and administrative overhead
COST
OF PRODUCTION = FACTORY COST + OFFICE AND ADMINISTRATIVE OVERHEAD
TOTAL COST
selling
and distribution cost added with cost of production, it is called
cost of sales or total cost for a product.
TOTAL
COST = COST OF PRODUCTION + SELLING AND DISTRIBUTION OVERHEAD
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