Manufacturing Cost: These are those costs which are directly involved in manufacturing of product or service. It includes
Direct Material
Direct Labour
Manufacturing Overheads
Non Manufacturing Cost: These are those costs which are not incurred for manufacturing of product. It includes
Selling and marketing expences
Administration expences
direct cost has direct relation with product manufacturing while indirect cost not and not identifiable with cost as well.
difference between cost and costing
Cost of goods sold is the total cost incurred for goods manufacturing while cost of goods sold statement is the document which shows the calculation of cost of goods sold.
whats the difference between cost and list?
For retail companies, computing cost of goods sold is a fairly straight forward process. Beginning inventory + purchases - ending inventory = COGS. For manufacturing firms, however, that simple formula won't work. They have to compute how much something cost to build, which can be extremely complicated. Hence, cost accounting evolved for manufacturing companies.
The main difference between licensing and contract manufacturing is the cost of doing business. Licensing manufacturing will require an agreement much like a franchise. The main entity supplies most of the products to conduct business. In contract manufacturing, the cost of materials is with the maker making it higher cost.
direct cost has direct relation with product manufacturing while indirect cost not and not identifiable with cost as well.
The difference is, that gross profit includes deduction from manufacturing cost. Sales value - Rawmaterial - Freight = Fluctuating Profit - Manufacturing Cost - Procurement = Gross Profit - Operating Expenses = Operating Profit
difference between cost and costing
Cost of goods sold is the total cost incurred for goods manufacturing while cost of goods sold statement is the document which shows the calculation of cost of goods sold.
Product costs is the costs are the costs incurred in the making of the product. Manufacturing costs --Direct Materials, Direct Labor, and Manufacturing Overhead. Product cost are also factory costs Period costs are the selling and administration costs. Electricity costs for the Accounting dept. is an administration costs but Electricity costs for the factory is Manufacturing Overhead.
whats the difference between cost and list?
There is no difference
For retail companies, computing cost of goods sold is a fairly straight forward process. Beginning inventory + purchases - ending inventory = COGS. For manufacturing firms, however, that simple formula won't work. They have to compute how much something cost to build, which can be extremely complicated. Hence, cost accounting evolved for manufacturing companies.
what is the difference?
Manufacturing cost is variable cost.
Is fire a selling cost, direct manufacturing cost, indirect manufacturing cost, administrative cost, foxed cost or variable cost.