FUNCTIONAL CLASSIFICATION OF ELEMENTS OF COST
Under this classification, costs are divided according to the function for which they have been incurred. The following are the classification of costs based on functions:
(i) Direct Material Cost
(ii) Direct Employee (labour) Cost
(iii) Direct Expenses
(iv) Production/ Manufacturing Overheads
(v) Administration Overheads
(vi) Selling Overheads
(vii) Distribution Overheads
(viii) Research and Development costs etc.
No comments:
Post a Comment