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What are the elements of cost?

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تم إضافة السؤال من قبل Mohammed El Tahir Mohammed Yousif , Finance Manager , Factory of Golden Block Company for Cement Products
تاريخ النشر: 2018/08/04
karim  hesham
من قبل karim hesham , Senior Accountant , Samam

direct materials ,direct labors , manufacturing over head 

Sagar Kumar
من قبل Sagar Kumar , Financial Accountant / Management Accountant , Upwork

Core/Direct Elements (Example SmartPhone)1.Direct Materials (Lcd, panel, touch...)2.Direct Labour (Operational staff involved during production)3.Direct Overhead (Rent of factory,machine electricity of production unit)

Other Elements = Indirect Material/Labour/Overheads Otherdepartments incur indirect cost normally.

Salman Ahmed Yammani
من قبل Salman Ahmed Yammani , General Manager Finance , Engineering Consultants International Pvt Ltd

If you are talking about product cost, this veries industry to industry and company to company, on a broader prospective whatever incurred for producing the product and bringing it to warehouse, you need to also add any costs related to people sitting in head office but mainly support production, in the last but not least is the supply chain cost that needs to be allocated to production, Sales and Admin based on certain agreed allocation keys

The person asked this question is from cement industry, hence process costing mechanism will be used here

If you are talking about Opex or Capex cost, then it a altogather different than above, all operation expenditures including a certain portion of supply chain allocation will be taken here, later divide it into Admin and Selling cost

If you are talking about Capex, than all coss incurred on project in the nature of fixed assets will be taken later on after completion of certain % of completion it will be capitalised upon agreed plan over project completion

 

 

sathis Jayaweera
من قبل sathis Jayaweera , Contracts Administrator / Senior Quantity Surveyor , Dar Al Handasah Consultants , Kuwait

Fixed cost + variable cost + profit 

Christopher Suruiz
من قبل Christopher Suruiz , RESTAURANT MANAGER , LINO’S RISTORANTE Italian Casual Dining Restaurant

Material, Labor (Direct or Indirect) and Expenses

Mark Vincent Guantero
من قبل Mark Vincent Guantero , Material Procurement Officer , Fuel Technology Contracting Co

Element of Cost...

Elements of Cost can be Direct or Indirect

Direct Cost Usually Consist of Materials and Mark-up

In Direct Cost Consist of Both plus the Manpower.

In Costing the important elements is the Updated Material Cost in this you can adjust the other elements depends on your Manpower Cost and Margin.

Saji George
من قبل Saji George , Finance Manager , MOUNT OF LIGHT MEDICAL COMPANY LTD

Materials, labor and overheads are the element of cost, all direct and indirect cost of said element s are considered for cost accounting...

JAYESH KURUP
من قبل JAYESH KURUP , Finance Manager , Sendan International Co.

Elements of cost as:-

  • Direct Material,Direct Labour,Direct Expenses (Prime Cost)
  • Indirect Material,Indirect Labour,Indirect Expenses(Overhead)-This consist Factory OH,Office,Admin & General OH and Selling & Distibution OH.

ONKAR JAIN
من قبل ONKAR JAIN , EXECUTIVE COSTING , KALYANITECHNOFORGE LTD

Direct Material, wages, OH This is prime cost elements

Vishwa Bopage
من قبل Vishwa Bopage , Cost Controller , Amaya Kuda Rah Maldives

Cost can divide in to Production Cost , Fixed cost, variable Cost, Main cost other than production.

seoudi khalaf
من قبل seoudi khalaf , area sales manager , - nada Company for Dairy Products - Saudi Arabia

Cost Management 1. Develop a cost plan 2. Cost estimate 3 - Determine the budget 3. Cost control

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