Meaning of Expenses
Expenses is one of important element of cost following material and labour production is not possible only by material and labour, in addition to some expenses ate to be incurred for completing production work.
These expenses can be divided into two part:
(1) Meaning of Direct Expenses
Direct expenses are those expenses which are directly chargeable to a job account It is known as direct charges or chargeable expense. These are variable expenses which vary with die volume of production.
(2) Meaning of Indirect Expenses
Indirect expenses are those other than indirect material cost and indirect labour cost which cannot be directly identified with a particular job, process or work order but are common to all jobs or process, indirect expenses that which needs to be apportioned because related part of expenses are included in the cost of production.
Sometimes these are included in cost in pre-determined ratio and these may be less or more than the actual expenses, in such a case, these expenses are known as ‘on cost’.
- What is Installation of a Costing System | Conditions and Factors
- What are the practical difficulties in installing cost accounting
- What is technique of Costing | Various techniques of Costing
- What is Material or Inventory Control | Techniques of Materials Control
- What is FIFO Method | advantages and disadvantages
- What is LIFO method | Advantages and Disadvantages
- What is Periodical or Annual Inventory Control System | Limitations
- Methods of Pricing Material Issues | Cost Methods
- What is Cost of Labour Turnover | Causes, Effects Classification
- What is meant by idle time | Definition, Causes, Control
- What is meaning of overtime work | Reason, Disadvantages
- HIFO method of inventory valuation |Advantages, Disadvantages
- What is two Bin System | Meaning of Bin Card and Specimen
- What is Meaning of NIFO Method | Advantages, Disadvantages
- What is Market Price Method or Replacement Price Method | Advantages, Disadvantages
- What is average cost method of Inventory valuation | Advantages and Disadvantages
- What is Meaning of Weighted Average Price Method | Advantages and Disadvantages
- Meaning of Material Losses | Types and Treatment
- What is Difference Between Waste and Scrap
- What is Meaning of Obsolete Material |Causes, Treatment and Losses
- What are Methods of Labour Remuneration | Advantages, Disadvantages
- What is Meaning of Piece Wage Rate Method | Advantages Disadvantages
- What is Meaning of Remuneration
- What is Collective Bonus Plan | Suitability, Advantages, Disadvantages
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