Professional Documents
Culture Documents
Service Sector
Provide Service
like Hospital,
Doctors, Lawyers
No Inventory
Merchandise
Sector
Only Buy And Sell
Goods
Inventory Only For Stock
Wholesaler
Manufacturing
Sector
Buy RM Process &
Then Prepare FG
Inventory
RM
Retailer
FG
WIP
BS & PL
BS & PL
BS & PL
Cost Records
Pre Prd
Cost
IncomeTax- Company Pay ta x Is expences. But company pay tax for Prd And
Distribution No .
Not for Prd Not For Distribution . If Company results of Production & Distribution
Profit then pay tax if loss form that Activity then company not pay . Hence its not
related to production hence we not taken in the cost of Product.
Dividend- Pay TO shareholder reasons for they get profitBut not pay
dividend because of production or manufacture hence Its not related to
Cost
Loan When we take loan then buy land machine & The INtersest of that
we pay to lender from the date of taken the loan not from the production
start of activity. Int exp are start before the production start hence its not
a a cost
When We buy RM Then Our production Start & End to Distribtion include in
cost
Cost- --- Cost is the Amount Incurred for Production & Distribution of
goods It Does not include intereset, tax and dividend
Cost Accounting ----- Recording Of Cost related Information.
Cost comprises of (Component Of Cost) ---Material , Labour & Expences
include Electricity rent
Costing----Costing is the method or Technique with the help of which Cost
Can be ascertain.
Cost + Costing= Cost Accounting
Responsibility Centres
Cost Centers
Profit Centers
Revenue
Centers
Investment
Centers