Types Cost Accounting

is the benefits of an alternative given up
when one decision is made over another.

material purchased by company to
make product,related to production

Consumable supplies

Freight

Sales commision

Direct cost

not easily related to producton ,
example: electricity

costs that have already been incurred and 
will not make any difference in the current
 decisions by management

Subtopic

expenses associated with day-to-day business
activities but are not traced back to one product
,it can be fixed cost or variable cost

cost do not vary with output product

Insurance

Depreciation

Rent

Salaries

cost will fluctuate with change
of output product

Commisision

Credit card fees

Production supllies

Material

Controllable costs are expenses managers
have control over and have the power to
increase or decrease