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What is cost centre and does it relate to cost units?
Cost center is the unit of quantity of product. Yes, it does relate to cost units. Without cost center, you could not determine if you had enough money to purchase units.
What is periodic cost?
Periodic cost is that cost which donot related with production of units and it must be incurred no matter production is done or not like depreciation.
What is difference between cost center profit center?
Cost Center: it is that department of a company whose manager is responsible for cost spending only like production department.Revenue Center: it is that department whose manager is only responsible for revenue for example sales department.Profit Center: it is that department whose manager responsible for cost as well as revenue of department that department is called profit centre like "Autonomous Business Units".
Is fixed cost the same as indirect cost?
NO both are not same as fixed cost is cost which remains fixed with change in production level while indirect cost is that cost which is not directly related for the production of units.
What is a cost center?
cost centre
What kind of cost is direct Labor?
Direct labor is direct cost as it varies with variation in production level and directly related with number of units of product.
Is wages a part of prime cost?
If wages are paid of those workers which directly related with the manufacturing or units then wages are part of prime cost otherwise it is part of conversion cost.
What is directly variable cost?
Directly variable cost means that which cost is directly related with the number of production of units of products. Example: For example if material amounting 10 is required to produce 1 product unit then total material amount of 100 will be required to produce 10 units of product in this case 10 is the variable cost per unit and 100 is the variable cost for 10 units of product.
What are the differences between direct cost and indirect cost?
Direct compensation is an employee's base wage. It can be an annual salary, hourly wage or any performance-based pay that an employee receives, such as profit-sharing bonuses. Indirect Compensation is far more varied, including everything from legally required public protection programs such as Social Security to health insurance, retirement programs, paid leave, child care or housing.
How do you calculate the variable cost per unit?
Variable cost is cost that varies with amount of production. In order to classify this cost, you must be able to decide if the cost can be directly related to the product. If it can, then calculate the total cost then divide it by the number of units produced.
Are variable cost are always indirect cost?
No. Variable cost is the same as direct cost because it can be varied directly to the cost centre or cost unit,while indirect cost can't be varied directly to it cost centre or cost unit.
How do you use cost centre in tally 9 what and how to create?
Cost centre is created after cost categories had been created. the cost center is used to hold and allocated income and expenses to
