This basic-level online tutorial is designed to provide you with a working knowledge of the terms and concepts you will need for the more advanced topics covered in. Chapter 02 - basic cost management concepts and accounting for mass customization operations 2-2 exercise 2-29 (continued) 3 alexandria aluminum company. Three basic cost elements involved in the manufacture of a product 2 manufacturing cost concepts financial accounting cost is a measure of resources used or. Chapter 2: basic cost terms and concepts cost terms - fixed - variable cost concepts management implications cost terms fixed costs: costs that remain constant.
2 basic concepts of cost chapter outline 1 introduction 2 cost concepts and terms 3 elements of cost 4 overheads 5 classification of costs 6 types of costing 7. Introduciton to basic cost concepts - duration: 5:00 ca n raja natarajan 35,934 views 5:00 bernstein. Cost concepts marginal cost marginal, as always in economics the basic decision rules are parallel to those for marginal cost: 1. We analyse the basic differences between these cost concepts we will continue the discussion on cost concepts and analysis actual costs this cost concept.
Basic concepts of cost accounting 1 2-1 basic cost accounting concepts 2 2-2 what is cost accounting the branch of accounting that. An introduction to the basic concepts of earned value management (evm), from initial project planning through execution including earned value data analysis. Basic concepts of costing, cost accounting, costing, cost accountancy,in any manufacturing activity understanding the nature and behavior of costs is of fundamental.
Previously, cost accounting was merely considered to be a technique for the ascertainment of costs of products or services on the basis of historical data. Basic cost concepts chapter 6 cost related questions what are the hotel’s fixed costs which costs are relevant to purchasing a new microcomputer what are the. Basic cost concepts 1 basic cost concepts 2 define terms 1) cost : expenditure incurred in producing a product or in rendering a service.
Various cost concepts, it's elements with solved examples by gautamkunu in business-management. Presentation of cost data under marginal costing and absorption costing marginal costing is not a method of costing but a technique the concept of cost-volume.
Questions for writing and discussion 1 a system is a set of interrelated parts that performs one or more processes to accomplish specific objectives. Opportunity cost – basic economics concept should i go to work today should i go to college after high school should the government spend money on a new weapon. If you decide to manufacture say electronic digital meter, you will need raw material, labor and incur other incidental expenses to manufacture. Before we dive too deeply into understanding the economics of power plants, it will be useful to review some basic cost concepts that you may remember from your. Introduction to cost concepts of external cost can be the cost of providing the basic infrastructure in understanding the cost concepts like. It is the most basic concept in economics the concept of costs and benefits encompasses a large area of economics that has to do with rational expectations and.
Back to course listing 2018-2019 course dates and locations reg. Basic cost concepts 3 problem 5: solution 1 number of customers labor costs july 5,000 $20,500 february 2,400 $10,450 difference 2,600 $10,050. Cost-volume-profit (cvp) analysis is a managerial accounting technique that is concerned with the effect of sales volume and product costs on operating profit of a. Start studying chapter 2: basic cost management concepts learn vocabulary, terms, and more with flashcards, games, and other study tools. Basic cost management concepts learning objectives after studying this chapter, you should be able to: 1 describe a cost management information system, its.