What are Direct Wages/Labour?
Direct Wages / Labour : This is also known as productive wages. This refers to the wages paid to the workers to convert Raw Materials...
Introduction to Cost Accounting
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What are Direct Expenses?
Direct Expenses : This is also known as chargeable expenses. This is incurred as per the specific request of the customer. e.g. : 1) Hire...
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What are Factory Overheads?
Factory overheads : This refers to various expenses incurred in relation to the manufacturing or production of the product. This is also known as “Factory...
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What are Office and Administration Overheads?
Office and Administration overheads : This is also known as General on cost or Administrative on cost. This refers to various indirect expenses incurred in...
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What are Selling and Distribution Overheads?
Selling and Distribution overheads : This refers to various indirect expenses incurred in connection with marketing and distribution of the product. e.g. : Sales commission,...
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What are Semi-Variable Expenses?
Semi Variable expenses : This refers to those expenses, which are partly fixed and partly variable. e.g. : Telephone expenses, Electricity, Travelling charges, etc.
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What are Fixed Expenses?
Fixed expenses : This refers to those expenses, which remain constant, irrespective of changes in quantity produced / sold . This means whether the quantity...
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What are Variable Expenses?
Variable expenses : This refers to those expenses, which will increase or decrease in relation to changes in quantity produced / sold. This means, when...
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What is Variable Cost?
Variable Cost : It is the amount by which total cost changes, if the output quantity is changed by one unit. Variable cost = Prime...
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What is Net profit?
Net Profit : It is the final net profit, earned by the company. Net Profit = Sales – Variable cost – Fixed Cost or Net...
