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Cost accounting looks like accounts, but it is a more complex subject because it needs both costing and accounting knowledge. It can be defined as collecting, analysing, referencing, summarising and reporting the costs incurred by the business in the products or services. The cost incurred by the business can be a variable or fixed cost. Cost accounting aims to balance direct and indirect costs to gain maximum profit for an organisation and maintain market competitiveness.
Cost Accounting Elements Covered Under Assignments
Cost accounting has three elements that are labour, material, expenses. These elements can be direct or indirect, i.e., direct material and indirect material, direct labour and indirect labour, direct expenses and indirect expenses.
Material: The majority of cost incurred in the undertaking of the material directly or indirectly. The material is a raw material or resource for the product, whereas it is time invested for service, tools and technique. According to our cost accounting homework help provider, the material can be further divided into sub-elements according to business needs. Good homework providers write about each material and the precise cost used in products or services in detail.
Labour: Labour cost is the cost of remuneration paid for physical or mental effort expanded in the production and extension of the business. Labour cost is the second-highest expense of the business, and to manage it, there are two main ways, namely through automation and maximising labour productivity and performance. Identifying each cost included as labour cost is essential for businesses to be precise about the recurring costs.
Expenses: All costs except labour and material cost come under expenses. They are not fixed costs since it depends on the season and period. It should not be confused with variable costs as they are essential to the organisation.
A sample of cost accounting assignment completed by one of our experts
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