Finance Numericals

 Cost Accounting helps to determine the total cost of production by ascertaining the different cost like fixed cost variable cost etc. Cost is divided into three parts that is: Material cost Labour Cost  Expense cost Material cost: It is a cost used to purchase raw material to manufacture goods. It is divided into two parts that is direct cost and indirect cost. Direct cost: It is a cost directly related to the production of goods. for example cement is use for construction work, timber is used for furniture etc. Indirect cost: It is a cost indirectly related to the production of goods. for example repairing cost of factory machine etc.  Labour cost: It is cost paid as a wages to the workers of factory. It is also divided into two part that is direct cost and indirect cost. Direct cost: It is a cost which is paid to workers who directly related to the production activity. for example workers who are working on timber to make a furniture. Indirect cost: It is a cost which is paid t