Tag Archives | Cost

Difference between Fixed Budget and Flexible Budget | Costs

The upcoming discussion will update you about the differences between fixed budget and flexible budget. Difference # 1. Fixed Budget: 1. Costs are not classified according to their variability, i.e., fixed, variable and semi- variable. 2. Fixed budget is inflexible and remains the same irrespective of the volume of business activity. 3. Fixed budget assumes […]

6 Main Components in Direct Material Cost | Cost Accounting

The following points highlight the six main components in direct material cost. The components are: 1. Indirect Taxes 2. Transport, Storage and Delivery Charges 3. Quantity Discounts 4. Trade Discount 5. Cash Discount 6. Packing and Container Charges. Component # 1. Indirect Taxes: The indirect taxes like sales tax, central sales tax, excise duty, customs […]

Cost Types: 3 Main Types of Cost

This article throws light upon the three main types of costs. The types are: 1. Fixed Costs 2. Variable Costs 3. Semi-Variable Costs. Type # 1. Fixed Costs: Fixed Costs also referred to as non-variable costs, stand-by costs, period costs or capacity costs are those costs which do not vary with changes in volume of […]

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