Elements of Cost
- Material (Material is a very important part of business)
- Direct material
- Labor
- Direct labor
- Overhead (Variable/Fixed)
- Indirect material
- Indirect labor
- Maintenance & Repair
- Supplies
- Utilities
- Other Variable Expenses
- Salaries
- Occupancy (Rent)
- Depreciation
- Other Fixed Expenses
(In some companies, machine cost is segregated from overhead and reported as a separate element)
They are grouped further based on their functions as,
- Production or works overheads
- Administration overheads
- Selling overheads
- Distribution overheads
Read more about this topic: Cost Accounting
Famous quotes containing the words elements of, elements and/or cost:
“But all subsists by elemental strife;
And Passions are the elements of Life.”
—Alexander Pope (1688–1744)
“In verse one can take any damn constant one likes, one can alliterate, or assone, or rhyme, or quant, or smack, only one MUST leave the other elements irregular.”
—Ezra Pound (1885–1972)
“How much would it cost you to stand at the wrong end of a shooting gallery?”
—S.J. Perelman, U.S. screenwriter, Bert Kalmar, Harry Ruby, and Norman Z. McLeod. Groucho Marx, Horsefeathers, Huxley College president to con artist Baravelli (Chico Marx)