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Q. Cost classification. |
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Basis
of Cost Classification |
Types
of cost |
|
01.Time
of incurrence |
1.Historical
cost (The
cost which already recorded) 2.Replacement
cost (machinery
replacement) 3.Budgeted
cost |
|
02.Reaction
to change in activity -cost
activity -cost
driver -cost
behavior |
1.Variable
cost 2.Fixed
cost 3.Mixed
cost 4.Steps
cost |
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03.On
the basis of financial statement |
1.Un
expired cost 2.Expired
cost 3.Product
cost 4.Period
cost 5.Prime
cost (all
direct cost is prime cost) 6.Conversion
cost (raw
material as finished goods cost is conversion cost) |
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04.Impact
on decision making |
1.Relevant
cost 2.Opportunity
cost 3.Sunk
cost 4.Direct
cost (which
can be trace easily) 5.Indirect
cost 6.Controllable
cost 7.Non
controllable 8.Different
cost |