cost accounting

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Definition of cost & Expenses Classification of cost Cost analysis British method of cost sheet

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Welcome :

Welcome

Group-3:

Group-3

Presenting………………….:

Presenting…………………. Definition of cost & Expenses Classification of cost Cost analysis British method of cost sheet

Arranged by-:

Arranged by- Md. Ikbal Hossain Lecturer Department of Marketing University of Rajshahi

Member Information:

Member Information ID. NO. NAME Topic 11097403 MD. Abdullah-al mamun ( Uzzal ) Definition of cost & Expenses 11067415 Mominul Islam Momin Classification of cost 11247427 Tahmina khanam ( Mitul ) Classification of cost 11087438 Sazu Sardar Classification of cost 11017451 Md. Rasedul Islam ( Rased ) Classification of cost 11117461 Imran Hasan Classification of cost 11037471 Md. Iftekhar Uddin Classification of cost 11037482 Jahir Rayhan Classification of cost 10017454 Palash Ghosh Cost analysis 11217494 Merrylin Srabanee Ghosh Specimen of cost sheet( British method) 11037504 Md. Shoriful Alam ( Masum ) Specimen of cost sheet( British method)

MD. Abdullah-Al-Mamun (Uzzal) 11097403 :

MD. Abdullah-Al- Mamun ( Uzzal ) 11097403

Definition of costing & Expenses:

Definition of costing & Expenses :COSTING: Cost accounting is the process of tracking, recording and analyzing costs associated with the products or activities of an organization, where cost is defined as 'required time or resources'. Cost accounting is also defined as a type of management accounting, which translates the physical movement of products into financial value in order to support decision-making and improve costs and cash flows. :Expenses: 1. Expenses are the opposite of revenues. Examples of expenses include payments to suppliers, employee wages, factory leases and depreciation. 2. Tax authorities frequently have very specific regulations that allow people to deduct certain expenses if used for business-related activities. For example, a traveling salesperson is allowed to deduct traveling expenses (fuel expenses and car rental costs) as a business deduction, because those costs are an integral part of the job.

Mominul Islam Momin 11067415 :

Mominul Islam Momin 11067415

Classification of cost:

Classification of cost Fixed, variable & Semi-variable cost 2. Product cost & Period cost

Tahmina khanam (Mitul) 11247427 :

Tahmina khanam ( Mitul ) 11247427

Classification of cost:

Classification of cost 3. Relevant cost: To make decision which cost are considered is called relevant cost. To select alternative this cost is considered. The characteristics of relevant cost are: a) cost will be related to future b) Different of cost among the alternative 4. Sunk cost : Cost which is not recoverable is called sunk cost. In cost calculation, this types of costs are not calculated. For example, The price of a old furniture is tk.5000 and if it sold tk.3000. Then the rest of tk.2000 is not recoverable and it is called sunk cost.

Sazu Sardar 11087438:

Sazu Sardar 11087438

Classification of cost:

Classification of cost 5.Imputed cost: If any cost is considered without paying it to any sector is called imputed cost. To determine real profit this cost is considered. This cost is- a)Labor cost of owner b) Rent of self house C) Interest of owner capital 6. Opportunity cost: When a alternative is accepted then the benefit of another alternative is sacrificed, the benefit which is sacrificed is called the opportunity cost of the accepted alternative. 7. Controllable & uncontrollable cost: The cost which can be controlled by management is called controllable cost. The cost which can not controlled by management is called uncontrollable cost. Every cost are not controllable by the management in every level. There also have some cost which have several controllable center. This can be controlled from where is generated. Such as- a) Electivity supply b) Cost for govt. rules & regulation

Md. Rasedul Islam (Rased) 11017451 :

Md. Rasedul Islam ( Rased ) 11017451

Classification of cost:

Classification of cost 8. Production, administration & selling and distribution cost- (A) Product cost: Product cost are those costs which are traceable to the product and included in inventory valuation. It comprises direct material, labor and manufacturing overhead in case of manufacturing concerns. These are used for valuation of inventory and are shown in balance sheet till they are sold. The product cost of goods sold is transferred to the cost of goods sold account. (B) Administration cost: The cost of formulating the policy, directing the organization and controlling the operation of an undertaking which is not related directly to a production, selling distribution, research or development activity or function.

Imran Hasan 11117461 :

Imran Hasan 11117461

Classification of cost:

Classification of cost 8. Production, administration & selling and distribution cost- (C) Selling cost: From business dictionary we can get a nutshell view On Selling cost That is Expenses incurred it he marketing and distribution of a product is called selling cost. We can get a deeper definition by the following statement It is the cost of selling to create and stimulate demand(Sometimes termed as marketing) and of securing orders . (D) Distribution Cost: Distribution Cost is any cost incurred to fill an order for a product or service. It includes all money spent on warehousing, delivering and/or shipping products and services to customers

Md. Iftekhar Uddin 11037471:

Md. Iftekhar Uddin 11037471

Classification of cost:

Classification of cost 8. Production, administration & selling and distribution cost- (e) Research cost :- It is the cost of searching a new or improved products , new application materials , or new or improved methods . (f)Development Cost:- The cost of process which begins with the implementation of the decision to producer or employ a new or improved method and ends with the commencement or formal production of that product or by the method.

Jahir Rayhan 11037482:

Jahir Rayhan 11037482

Classification of cost:

Classification of cost 8. Production, administration & selling and distribution cost- (g) Pre-production cost (h) Conversion cost

Palash Ghosh 10017454:

Palash Ghosh 10017454

Cost analysis:

Cost analysis Prime cost: prime cost consists of cost direct materials, direct labors & direct expenses. Direct material + Direct labor + Direct expenses = prime cost or direct cost or first cost. Factory cost: Factory cost comprises prime cost in addition, works or factory overheads that include cost of indirect materials, indirect labor, indirect expenses. Prime cost + Factory overhead = Production cost or Manufacturing cost. Office cost: Office cost is the sum of office and administration overheads & factory costs. Production cost + Office & administration overheads = Office cost or total cost of production. Total cost: selling and distribution overheads are added to the total cost. Office cost +selling & distribution overheads =cost of sales or total cost

Merrylin Srabanee Ghosh 11217494:

Merrylin Srabanee Ghosh 11217494

Specimen of Cost Sheet (British Method):

Specimen of Cost Sheet (British Method) Items Total cost( Rs ) Unit cost( Rs ) Direct materials (+) Opening stock of raw materials (+) Purchases (+) Carriage inwards (˗) Closing stock of raw materials (˗) Scrap Cost of Raw materials/ Raw materials consume (+) Direct wages/direct labor /productive labor (+) Direct Expenses Prime cost (+) Factory overhead/ works expenses/factory expenses (+) Opening Works-in-progress (˗) Closing Works-in-progress Factory/ works cost/manufactured or production cost *** *** *** *** *** *** *** *** *** *** *** *** *** ***

Factory overhead/ works expenses/factory expenses 1.Indirect material 2.Loose tools 3.Indirect wages/indirect labor/unproductive labor 4.Rent and rates (factory) 5.Lighting & Heating (factory) 6.Power & fuel 7.Repairs & maintenance 8.Cleaning 9.Drawing office expenses 10.Research & experiments 11.Depreciation of factory plant 12.Works stationary 13.Welfare service Expenses 14.Works manager salaries 15.Import duty Insurance: 1.Fixed assets 2.Stock & finished goods :

Factory overhead/ works expenses/factory expenses 1 . Indirect material 2.Loose tools 3.Indirect wages/indirect labor/unproductive labor 4.Rent and rates (factory) 5.Lighting & Heating (factory) 6.Power & fuel 7.Repairs & maintenance 8.Cleaning 9.Drawing office expenses 10.Research & experiments 11. Depreciation of factory plant 12.Works stationary 13. Welfare service Expenses 14.Works manager salaries 15. Import duty Insurance : 1.Fixed assets 2.Stock & finished goods

Md. Shoriful Alam 11037504:

Md. Shoriful Alam 11037504

PowerPoint Presentation:

Items Total cost( Rs ) Unit cost( Rs ) works cost (+) Office & Administrative Overhead Cost of production/ cost of goods manufactured (+)Opening Stock of finished goods (-)Closing stock of finished goods Cost of goods sold (+) Selling & distribution overhead Total Cost of goods sold (+) Net profit Or…………………………………… (-) Net loss Sales *** *** *** *** *** *** *** *** *** ***

PowerPoint Presentation:

Office & Administrative Overhead : 1.Rent and Rates (office) 2.Salaries (office) 3.Lighting & heating (office) 4.Insurance of office building & Equipment's 5.Telephone & postage 6.Printing & stationary 7.Depreciation of furniture & office equipment's & buildings 8.Legal expenses 9.Audit fees 10.Bank charges 11.General expenses Selling & distribution overhead 1.Showroom rent & rates 2.Lighting & heating 3.Salesman salaries 4.Commission 5.Travelling expenses of sales man 6. Sales printing & stationary 7.Advertising 8.Bad debts 9.Postage 10.Depreciation & expenses of delivery van 11.Debt collection expenses 12.Carriage freight outwards 13.Samples & other free gifts

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QUESTION & ANSWER SESSON ? ? ? ? . . . . .

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