Accounting -Cost Classification?
Can anyone tell me whether each of the following costs would be classified as 1. Direct labor, 2. direct material, 3. manufacturing overhead, 4. selling cost, 5. general cost or 6. administrative cost a. hourly wages paid to backhoe operators b. crankcase oil used in construction machinery c. PVC pipes used in a municipal sewer construction equipment d. depreciation of bulldozers and other construction equip. e. advertising costs f. steel beams used in the construction of an office building g. salaries paid to foremen responsible for supervising multiple construction projects h. legal costs i. gasoline used in trucks that haul construction equip. to various job sites j. hourly wages paid to masons and carpenters k. costs for accounting and tax services l. the CEO's salary m. Rivets, screw, nuts and bolts Thanks
How much does URL classification cost?
In the world of finance and business, cost plays the most dominant role and the section which holds its management is known as cost accountancy or cost management. In the field of production, retailing, research and accountancy, cost is demonstrated as the value of money that has been used up to produce something and it is not available further for any one. In the field of business, cost may be one of acquisition in which the amount of money expended to acquire it. There are many companies providing best classification of cost assignment help only for students. In accounting, costs are the monetary value of expenditures, supplies, services, labor, products, equipments and many more.For more details visit Classification of Cost Assignment Help here.
How can cost classification be defined?
Thanks for the A2A.Cost is mainly classified into two parts as per the accounting terms: Fixed cost & variable cost.Fixed Cost: Fixed cost are the cost which are incurred by the company no matter if the company is working or not. These cost do not vary and are same/constant through the life of the existence of the company.Examples: Property Taxes, Depreciation, Rent etc.Variable Cost: These cost are incurred when the company has its ongoing production or manufacturing. They keep of fluctuating as per the units bought or inputs produced. They change as per the production output.Examples: Raw Materials, Storage cost etc.This is very general level of understanding of the cost.hope this helps. thanks
What is cost classification in a department?
cost classification. The separation of expenses into different categories. For example, cost classification in economics might involve categories of fixed, variable, opportunity, production and sunk costs. On the other hand, accounting costs can be classified as either direct or indirect for a business.For more details visit Classification of Cost Assignment Help here.
Cost Classification, Fixed or Variable Cost?
Fixed: Rent Property Insurance Malpractice Insurance Depreciation: Office Equipment Variable: Advertising Overtime: Legal Secretary, Clerk-Receptionist Office Supplies Utilities The remaining would depend on how they are paid. Wages: Lawyer, Paralegal, Legal Secretary, Clerk-Receptionist Fringe Benefits
Help! Cost Accounting E1-5 Cost Classification?
You seem to have most of them in the right place, the thing to remember is if you need to buy it in to make the product then it's basically a direct cost, if its still going to cost even if you don't make anything in the factory then it's a factory overhead. a) Steel used in an overhead door plant. direct materials b) Cloth used in a shirt factory. direct materials c) Fiberglass used by a sailboat builder. direct materials d)Cleaning solvent for the factory floor. factory overhead e)Wages of a binder employed in a printing plant. direct labor f) Insurance on factory machines. factory overhead g) Rent paid for factory buildings. Selling and Administrative expense h) Wages of the Machining Department Supervisor. factory overhead i) Leather used in a shoe factory. direct materials j) Wages of a factory janitor. direct labor? no factory overhead k) Electric power consumed in operating factory machines. factory overhead, but could be a direct expense l) Depreciation on corporate offices. factory overhead m) fuel used in heating a factory. factory overhead n) Paint used in the manufacture of jet skis. direct materials o) Wages of an ironworker in the construction business. direct labor p) Electricity used in lighting sales offices. factory overhead i would say Selling and Administrative expense
What is the meaning of “cost of capital”? What is the classification of costs?
The cost of capital for a firm tells you how much it costs for a firm to secure funding. Think of interest rates for instance. That’s a cost of debt capital. There’s also a cost of equity capital, which is about the costs raising via the secondary markets. When you combine these, you have a weighted average cost of capital, after applying tax shield on the debt component, and weighting it for proportions equity and proportions debt being targeted. What you want to see is that the return on invested capital - i.e. the return on capital that is being injected into the firm rather than self-financing - is generating a higher return than this weighted cost. This is central in valuations, as you see positive value generated here which is reflected in a net present value calculation (where you sum over some period of years, and then take the sum to infinity for the terminal value) or in an internal rate of return which converts that NPV into a percentage return figure for the given project etc. Hopefully that helps clear up the idea some.
What is an ideal cost function for binary classification?
For Binary Classification, the ideal cost function would be the F1-Score.You can read more about F1-Scores here :F1 score
What are the different classifications of the cost of production?
Parts (including raw materials and energy) are costs of production that are usually linear with the amount produced. If you try to produce so much that one of these components gets scarce, then cost may go up faster than pats or product.Labor is a cost of production. Usually you hire one or a group of new people and your production capacity goes up by some number of units. So the cost vs. production curve is somewhat shaped like a flight of stairs.Capital good (like factories and tooling) are costs of production. Because they are expensive, capital costs go up in large steps. Usually production goes up in smaller steps. That is, you build a new plat with more capacity than you expect to use for next year's production, since you don't want to build new plants every year.If you are looking for more details than this, do you want help understanding accounting rules, formulating a business plan, evaluating someone else's business plan, or ...?
What are the classification of cost accounting according to decision making?
Relevant costs and irrelevant costs. Relevant costs are the ones which increase (or decrease) because of the decision while irrelevant costs would be incurred anyway, and any change isn't affected by the decision. These irrelevant costs are also known as “sunk” costs.The usual classification of costs by fixed, variable and step costs may not necessarily correspond to relevant and not relevant, but they are useful in breakeven analysis, and some other decision making techniques.You might think fixed costs are not relevant to a decision but many decisions do involve adding costs which will be fixed or reducing them. Anything to do with headcount, capex or rents of premises usually means a new fixed or step cost. In the case of batch processing even material inputs can be of a step cost rather than a purely variable or incremental nature. So don't fall into the trap of worrying about fixed and variable, instead consider logically all the costs, whether fixed or variable, that are expected to appear, disappear or change as a result of the decision.Beyond this, you should consider opportunity cost, which is the cost of lost opportunity involved in taking the opportunity. If by choosing one project I have to not chose another, then the profit of the other project is an opportunity cost of my decision. While other costs will be reflected in the books in some way, opportunity cost will not be so it is easier to overlook.We always need to take account of the time value of money, so the relevant costs of the project need to be placed in a discounted cash flow calculation, for which you need to know your cost of capital. The expected net present value of your decision is your basic criterion.Finally consider the tax implications of any decision. A decision which works before tax is taken into account can be scuppered once the relevant tax rules are attached to it. For this, most businesses are well advised to consult a specialist advisor.