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TYPES OF COST

•  Real cost – The cost spends in real manufacturing a good or providing service is called, the actual cost of the corporation.
•  Opportunity cost – The value of the opportunities lost or the value of the best possible alternative is an opportunity cost. Opportunity cost is the price of financial endeavor that was not undertaken to generate current supplies & services.
•  Sunk cost – Sunk cost is the cost which does not vary because of the nature or level of business activity. They are also known as an unavoidable cost, according to our cost accounting homework help professional.
•  Incremental cost – Incremental cost is exactly opposite of sunk cost. Incremental cost varies or increases, according to the changes in the industrial activity.
•  Explicit cost – The cost which is paid by the firm is known as explicit cost. An explicit cost is also called paid out the cost.
•  Implicit cost – The cost which is not shown in the account books of the corporation, but can influence main business decisions of the corporation.
•  Book cost – The cost which is not paid directly, but a provision is created for those costs in the profit and loss statements, are known as book cost.
•  Accounting cost – The outlay cost that is already incurred in a particular production or process is known as accounting cost.
•  Economic cost – Future cost is the cost that is not yet incurred but plays a major part in business decisions.
•  Direct cost – That cost which has a direct relation to the unit of manufacture or operation is known as direct cost.
•  Indirect cost- Indirect cost is the cost which is related to the production process, but are not said to be directly accountable to the cost object.

ELEMENTS OF COST

As said by our assignment writers for cost curve assignments, the most significant exercise of costing is to fix what is called COGS i.e. cost of supplies sold. We must understand the three basic elements to determine the cost of goods sold. Our knowledgeable accounting theory experts have put down the elements consequently:

1. Direct material cost- The amount total of the expenses of the raw material which was directly implicated in manufacturing goods is known as direct material.

2. Direct labor cost- Direct work cost is the total cost of the work finished by the workers, who really make the product.

3. Manufacturing overhead costs- The cost that is associated with the cost thing, but cannot be frankly traced back to the object cost in an inexpensively possible way is known as manufacturing overhead costs. In order to make a profit, it should be added to the ultimate cost.

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