BASIC COST ACCOUNTING - CHAPTER 3 & 4

Abstract

Cost Accounting is part of quality management and has become one of the most important approaches to assist the management team in their key tasks including planning, evaluating, analysing, controlling, and monitoring the organization’s activities for either manufacturing or services sectors. Everyone who works in an organization needs to learn about costs, strive to enhance quality and deliver improvements for their product or services offered in themarket. This e-book's second series contains 2 more chapters, Costing for Labours and Costing for Overhead. Costing for labours enables readers to differentiate between direct labour and indirect labour, develop knowledge of the method for recording and control of labour cost, remuneration methods and calculate labour productivity and labour turnover. Costing for Overhead enables readers to learn the concep tof how direct expenses trace to products, understand the classification of overhead, production and service departments and distinguish between allocation overhead, apportionment and reapportionment of overhead. This chapter also enables readers to apply the overhead absorption rate to production cost.