What Is The Meaning Of Cost?

What are the main classes of cost?

Cost Classification refers to a complete and transparent idea of separation of expenses in the different sector as like manufacturing cost, product cost, sunk cost, variable cost, direct cost, and indirect cost etc.

Classifications of cost are a vital part of a company..

What are the elements of cost?

Elements of CostDirect Material. It represents the raw material or goods necessary to produce or manufacture a product. … Indirect Material. It refers to the material which we require to produce a product but is not directly identifiable. … Direct Labour. … Indirect Labour. … Direct Expenses. … Indirect Expenses. … Overhead. … Factory Overhead.More items…

What are the main objectives of cost accounting?

Objectives of cost accounting are ascertainment of cost, fixation of selling price, proper recording and presentation of cost data to management for measuring efficiency and for cost control and cost reduction, ascertaining the profit of each activity, assisting management in decision making and determination of break- …

What are the 4 types of cost?

Following this summary of the different types of costs are some examples of how costs are used in different business applications.Fixed and Variable Costs.Direct and Indirect Costs. … Product and Period Costs. … Other Types of Costs. … Controllable and Uncontrollable Costs— … Out-of-pocket and Sunk Costs—More items…•

How much is it cost Meaning?

Phrase. How much does it cost? What is its price?, How much money do you want for it?

How do you use the word cost?

Cost sentence examplesIt must have cost a fortune! … That must have cost you a pretty penny. … It would cost you a fortune. … I am simply curious at what cost you are willing to pursue your goal. … It would cost more than seven dollars to have them dry cleaned and pressed. … My ticket cost a whole lot less dough.More items…

What are the 3 types of cost?

Types of costsFixed costs. Fixed costs are costs that do not vary with the level of output in the short term.Variable costs. A variable cost varies in direct proportion with the level of output. … Semi-variable costs. … Total costs. … Direct costs. … Indirect costs.

What is the meaning of cost accounting?

Cost accounting is a form of managerial accounting that aims to capture a company’s total cost of production by assessing the variable costs of each step of production as well as fixed costs, such as a lease expense.

What is real cost and money cost?

Answer: Real” cost implies an accumulation of various kinds of costs to attain the total costs while “Money” cost is the production cost expressed in monetary terms.

What is advantage of cost accounting?

One of the biggest advantages of cost accounting is that it will help the management with future plans they may have. For any production or selling plans, it is important to have detailed data about the machines, the labour capacity, output levels, levels of efficiency of each process etc.

How do you spell cost?

Correct spelling for the English word “cost” is [kˈɒst], [kˈɒst], [k_ˈɒ_s_t] (IPA phonetic alphabet).

Is rent a fixed cost?

Unlike variable costs, a company’s fixed costs do not vary with the volume of production. Fixed costs remain the same regardless of whether goods or services are produced or not. … The most common examples of fixed costs include lease and rent payments, utilities, insurance, certain salaries, and interest payments.

What is another word for cost?

Synonyms of costcharge,disbursement,expenditure,expense,outgo,outlay.

What type of cost is rent?

Rent expense is a type of fixed operating cost or an absorption cost for a business, as opposed to a variable expense. Rental expenses are often subject to a one- or two-year contract between the lessor and lessee, with options to renew.

Is rent a sunk cost?

A sunk cost refers to a cost that has already occurred and has no potential for recovery in the future. For example, your rent, marketing campaign expenses or money spent on new equipment can be considered sunk costs.

What are the different types of cost?

Types of CostsFixed Costs (FC) The costs which don’t vary with changing output. … Variable Costs (VC) Costs which depend on the output produced. … Semi-Variable Cost. … Total Costs (TC) = Fixed + Variable Costs.Marginal Costs – Marginal cost is the cost of producing an extra unit.

What cost means?

In production, research, retail, and accounting, a cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. … Usually, the price also includes a mark-up for profit over the cost of production.

What is the past tense of cost?

past tense of cost is cost or costed.