Cost Concept and Cost Objectives

 There are many concepts about Cost.This concept depends on departments.These departments are Accounting, Economics, Marketing etc.

According to my opinion the money that is incurred to produce any ptoduct or service this money is called Cost.

In other words we can say that the amount we expand for the production of particular type of product or service this amount is called Cost.

Cost Object-All activities which belongs production and concern activities of production measured in financial term this process is called Cost objectives.

In other words we can say that any item or activity which belongs Production is separately measured this process is called Cost objects.

Types of Cost Objects-There are many objects of cost.These objectives are as below-

Output-It is the first objective of Cost.Every organization wants to know the output cost of his product.

Operational- It is the second objectives of Cost.There are many eperations we perform in production process.Cost helps us to know the expenditure according to operationwise.

*Relation-It is also an important objective of Cost.There are many relationship organization maintain to Retailers,Wholesellers,Sealers. etc. Cost helps us to know the expenditure to maintain all relations.

Cost Object of Car

1.Product- All activities belongs to product

2.Project- Research and development

3.Service-Hotel expenditure,Cellphone expenditure

4.Customers- To showroom expenditure

5.Activity- To establish unit.