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meaning related to cost

Former Member
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hai,

anyone tell the meaning of the followings

cost -

cost object -

cost element -

cost center -

profit center -

Internal order -

profitability analysis -

Product cost -

Activity based cost -

govind.

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Accepted Solutions (1)

Former Member
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cost -- Expenses or money spent for particular things

cost objects are cost center, order, project, business process, and so on.They carry the costs

cost element - describe the origin of costs. Cost elements are defined as either primary or secondary. Pimary cost elements arise through the consumption of production factors that are sourced externally. Secondary cost elements arise through the consumption of production factors that are provided internally (that is, by the enterprise itself).

cost center -Cost centers are separate areas (within a controlling area) at which costs are incurred

profit center -A profit center represents an organizational subunit that operates independently on the market and bears responsibility for its own costs and revenues.

Internal order -are used to plan, collect, and analyze the costs arising from internal activities.

Profitability Analysis analyzes the profit or loss of an organization according to individual market segments. For each market segment, the system allocates the corresponding costs to the revenues.Profitability Analysis provides a basis for decision-making, price determination, customer selection,conditioning, and for choosing the distribution channel.

Product cost is the minimum price at which a product can be produced

Activity based cost - In product costing, unit cost can be allocated based on activity type, quantity,and price.

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