文档介绍：Unit2:ManagingFinancialResourcesandDecisionsChapter7&9 AnalysisofCostsandPricingDecisionYourobjectivesThisweekwewillbeconcentratinguponthefollowing:CostCentreandCostUnitsCostClassificationHowtomakePricingDecisionsusingrelevantinformationCostcentresInthisexample,thecostcentresoftheproductionfunctioncouldbethemixingdepartment,thebakingdepartmentandthestoresdepartmentWhencostsareincurred,theyareallocatedtoacostcentreCostcentresmayinclude:adepartment,amachine,aproject,anewproductCostClassificationfor StockValuationandProfitMeasurementThetotalcostofacostunitismadeupofthefollowingthreeelementsofcostMaterialsLabourOtherexpenses(suchasrentandrates,interestchargesandsoon)CostelementscanbeclassifiedasdirectcostsorindirectcostsTotalExpenditureDirectCostAcostthatcanbetracedinfulltotheproduct,service,ostsoftheworkforceusedtomakeaproductOtherdirectexpensesarethoseexpensesthathavebeenincurredinfullasadirectconsequenceofmakingaproductIndirectcostAlsoknownasoverheadAcostthatisincurredinthecourseofmakingaproduct,ponentpartsPart-finishedworkwhichistransferredfromdepartment1todepartment2Primarypackingmaterialslikecartonsandboxes