Element of Cost
There are many element of cost.These elements are as below.. 1.Material It is the first element of cost .The amount that expands to purchase ,store of raw materials this amount is called Material cost 2..Labour cost. It is the second element of cost.The amount that is expanded to pay labour to get their knowledge ,talent,skill,wisdom this amount is called labour cost 3.Expenses It is also an important element of cost .The amount that is expanded besides material and labour this amount is called expenses All these expenditure may be classified into two parts.One is direct and second is indirect 1.Direct material cost It is the first part of material cost..The material that is used in production process and the amount we expand on it called direct material cost. In other words we can say that the amount that be expand to purchase and use material this is called direct material cost 2.indirect material cost The amount that be expand to store ,transport material into godan to pl...