文档介绍：Paper F2 Management Accounting Chapter 4 Cost behaviour
Paper F2 Management Accounting
Chapter 3
Cost classification
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By nature
By traceablity
Cost classfication
By function
Direct cost
Indirect cost
By behaviour
Materials cost
labour cost
Expenses
Production cost
Administration cost
Selling cost
Distribution cost
R&D cost
Fixed cost
Variable cost
Mixed cost
1 Total product/service costs
Grouping by nature:
Pool of costs
Materials
Labour
Expenses
2 Classification by Traceability
Direct costs
Costs incurred for the benefit of one specific cost object
E3>.g. material and labor cost for a product.
Indirect costs
Costs incurred for the benefit of more than one cost object.
. maintenance expenditures benefiting two or more departments.
Classification by Traceability
Cost Objects: any activity for which a separate measurement of costs is desired.
If the user of management information wish to know the cost of something, this something is called a . It could be: a product, a service, or a department, etc.
Classification by Traceability
Cost Assignment
Type of Cost
COST
OBJECT
DIRECT COST
Direct Materials
Direct Labour
INDIRECT COST
Plant depreciation
Factory rent
Supervisor Salaries
Cost Tracing
POOLED
Cost Allocation
Work on installation equipment
Idle time of direct workers
Employer’s National Insurance Contributions
Bonus payments
Overtime premium
The basic pay of indirect workers
The basic pay of direct workers
NONE
D
Question
Some indirect costs are as follows:
Production overhead
Administration overhead
Selling overhead
Distribution overhead
Let’s have a quick quiz--A direct labour employee’s wages in week 5 consists of the following. What is the direct labour cost for this employee in week 5?
A 144 B 168 C 198 D 204
204
Total gross wages in week 5 for 42 hours of work
30
A bonus payment under a group bonus scheme-bonus for the