Please enable JavaScript.

Coggle requires JavaScript to display documents.

Section D 15% (1) Measurment Concepts (Cost Classification (Other Costs…

- - - - Variable
      - Fixed
      - Mixed
    - - Direct
      - Indirect
    - - Manufacturing
        (Production / Inventoriable costs)
      - Non-manufacturing
        (SG&A / Period costs / Non-inventoriable)
    - - Note
        Prime costs DM + DL
        Conversion costs DL + MOH
      - Note:
        period costs may allocated to production for INTERNAL decision (for pricing)
    - - Relevant / Sunk Costs
        
        Relevant
        
        (1) future scenario (2) differs for multiple options
        
        Sunk costs
        
        incurred (historical) or Committed (past decisions)
      - Controllable / Non-controllale
        
        (specified manager)
      - Value adding / non-value adding costs
        
        (process analysis) (affect quantitiy, quality & responsiveness )
      - Transferred in costs
        
        (between production departments)
      - Carrying costs / Stock out costs
        
        Carrying costs : Storing or inventory costs includes implicity & explicit
      - Rework , Scrap & Waste
        
        Rework (related to finished goods) & Scrap /Waste (related to Raw materials)
      - Normal / Abnormal spoliage
        
        normal to pruduct (manufacotring) costs & Abdnormal to period costs
      - Joint & Separable costs (Oil, Petrol & Asphalt)
      - Engineered (direct) / Discretionary (budgeted - to achive - no strong input and output)
      - Avoidable / Committed (past decisions / un-avoidable)
      - Outlay (explicit cost) / Opportunity costs (implici costs)
        
        (Note: Economic costs = implicit + implicity costs
      - Incremental / Differential Cost