Cost accounting is one of the integral subjects for commerce students. It deals with the effective management of the cost of fixed and variable costs of products in the business. It aims to calculate, control, and reduce the cost to help the organization make wise business decisions. It comprises many arithmetic calculations, which many students cannot do in their assignment and seek cost accounting assignment writing help.
Different underlying concepts of the subject make it difficult for students to do assignments. There are many fundamental elements of costs that need to be recorded, such as direct labor cost, direct material cost, manufacturing overhead cost, actual cost, opportunity cost, book cost, explicit cost, economic cost, direct cost, and indirect cost. These elements get summarized and analyzed to make an effective profit in the company’s business.
Writing cost accounting assignment flawlessly seems impossible for every student. Students struggle with many problems and need help with the same. The most common cause is the concept of cost accounting replete with different branches like Standard or Standardized cost accounting, Lean accounting, Activity-based accounting, Target costing, Resource Consumption accounting, Life cycle assessment, Environmental accounting, etc. Students cannot comprehend all variations and thus seek help.
If students try to explore the subject’s fundamental concepts, answering the questions in the assignments correctly becomes way easier. The following are must-know definitions for students as a accounting assignment writing help to score higher grades in the assignment.
1. Fixed Cost and Variable Cost
Fixed cost means the cost of fixed components irrespective of output like salaries, rent, taxes, insurance or depreciation, etc. It is also called an overhead cost. On the other hand, the variable cost depends on the business’s different factors, like the cost of labor, transport, materials, etc.
2. Direct Cost and Indirect Cost
The cost of material, which is directly dependent on output, is a direct cost. It is mainly considered the volume of production in manufacturing. And indirect costs resemble a fixed cost, which includes labor cost, rent, plant set-up, traveling, etc.
3. Product Cost and Period Cost
Product cost is not dynamic but rigid. It relates to its output. In cost accounting it includes static manufacturing costs and variable costs. Meanwhile, period cost concerns over the current period. It does not relate these costs to intermediaries in the process of business.
4. Sunk Cost
This cost is free from the effects of business nature or trading activities. It includes available cash or any other resource ready in that current situation. Advertising, buying equipment, marketing, payroll, or depreciation of cars are some real-life examples of sunk costs.
5. Incremental and Opportunity Cost
Two different options available in business with their own significance are called incremental costs. Economic activities business can avoid undertaking to produce goods and services are called opportunity costs.
6. Operating Cost
Operating costs include day-to-day expenses requires for different activities in the company. Other costs, such as variable, direct, fixed cost also included in operating costs. Balancing the operating expense ratio is the responsibility of the accountant. It decides the efficiency of the organization to generate sales through resources.
7. Bottom line:
When you study any concept or definition, write it in your own words in a simplified manner. You can also take any personal examples to understand it practically. It shall help you apply this in various realistic events while writing a cost accounting assignment.
Summary: This article gives you a brief explanation of the necessary definitions of a cost accounting assignment’s elements.
