Ppt on Costing Factor

8/3/2019 Ppt on Costing Factor

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PRESENTATIONON

COSTING FACTOR

Meeta Gawri


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CONTENT

ELEMENT OF COST

FACTOR OF COST

IMPORTANCE OF COST

COST


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CLASSIFING,ORGANISATING,REPORTING

IT IS A PROCESS OF COLLECTING, AND

USING COST.

COST CALCULATION IS VERY IMPORTANT

FACTOR AS IT WILL RESULT IN EITHER

PROFIT OR LOSS.

COSTING


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TO CALCULATE PROFIT OR LOSS

FOR INVENTORY CONTROL

TO ANALYSIS THE VARIOUS COSTOF RESOURCES

TO KEEP CHECK ON EXPENSESAND INFLOW OF COST OF GOODS

TO CALCULATE MANUFACTURINGCOSTFOR PLANNING, BUDGETING

AND FUTURE EXPANSION

NEED OR IMPORTANCE OF COSTING


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ELEMENTS OF COST

ELEMENTSOF

COST

MATERIAL LABOUR EXPENSES


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LABOUR

EXPENSES

INDIRECT

DIRECT

MATERIAL


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DIRECT COST : It is the actual cost of

Material that will make up the finish

product.

DIRECT LABOUR : It is the wages cost of

those employees who actuallymanufactured the finished product

DIRECT EXPENSES :These are the expenses

without which a specific product could not

be made, these are related to specific product.


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INDIRECT MATERIAL : Means thosematerials used in the factory which do not

form part of the finished goods.

INDIRECT LABOUR : It means wages andSalaries to the employed to work in factoryBut dont form the finished goods

INDIRECT EXPENCES : All factoryExpenses


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PRIME COST

DIRECT MATERIAL+ DIRECT LABOUR+ DIRECT EXPENCES

FACTORY OVERHEAD

INDIRECT MATERIAL+ INDIRECT LABOUR+INDRECT EXPENCES

PRODUCTION COST

PRIME COST+ FACTORY OVERHEAD

PRIME COST

DIRECT MATERIAL+ DIRECT LABOUR+ DIRECT EXPENCES

FACTORY OVERHEAD

INDIRECT MATERIAL+ INDIRECT LABOUR+INDRECT EXPENCES

PRODUCTION COST

PRIME COST+ FACTORY OVERHEAD


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PRODUCTIONCOST

SELLING &DISTRIBUTIONADMINISTRATION

& FINANCE

TOTAL COST


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DIRECTMATERIAL

DIRECTLABOUR

DIRECTEXPENSE

FACTORYOVERHEAD

SELLING &FINANCE

ADMN.

Fabric used in agarmentZipper, cost ofthe button,Packing cost

Wages cost ofthe worker workfor producinggarment,Pressroomwages,Cutting roomwages

Royalty paid, Cleaning materialused in factory,Work-study officersalaryRent of factory,Heating andlighting in factory.

Discount to thecustomer

Salesman salary,Rent of

showroom

Officer salary,

bank charges,

audit fees staff

canteen cost


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ELEMENTS OF USE IN MAKING ASHIRT

LABLE

BUTTON

FABRIC

THREAD


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DIRECT COST= Fabric, Buttons, Fusing, threads

DIRECT LABOUR= Spreaders+ cutter+

Sewer+ washer

DIRECT EXPENSES=Royalty +Sampling+Fabrication,


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FACTORY OVERHEAD

Heat and Lighting

Factory rates

Officer salary

Maintenance cost

Cleaning material


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FIXED VARIABLEFIXED VARIABLEFIXED VARIABLE

FACTOR OF COST


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FIXED COST :

These cost are not effected by the outputof the business.

VARIABLE COSTThese cost increases with output of business.

It include all direct cost

SEMIVARIABLE COST

These cost contain an element of cost that arefixed as well as variable


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Ppt on Costing Factor

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