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Management account lesson 1

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Element of cost.
The definition of cost is the amount that you paid for the product.Cost unit is the quantitative unit of the product that relationship with the product ascertainment. The meaning of ascertainment is the raw material of the product. The cost center is a location, a person even an equipment. The cost per unit means the price per one item. Therefore the cost object have 3 main point. First is the cost for stock valuation. To easy know the cost of the product. It also element of manufacturing cost. When you know the cost then you can know the job and process cost. Secondly, cost make us to make decision easily. Cost behavior included and there have 3type of making decision. Cost variable, Cost fixed and Cost semi-variable. There are also have relevant and irrelevant means your course isn't relevant withh your future job. And also have avoidable and unavoidable. Controllable and uncontrollable its means if something that you can make decision like how many hours you need to sleep and this is something that you can control. Time is something that you cannot control because time fly quickly. It have 3 element of cost. the direct material like cotton. Direct labour means labour of the produce product and also maanufacturing /production /factory overhead. Prime cost is related with direct material ,direct labour but convert material included direct labour and manufacturing overhead . Therefore what is the meaning of non-manufacturing overhead is different with the manufacturing overhead. Advertising and administrative all is under non-manufacturing.