Financial & Management Accounting

Chapter 1.2 : Cost Concepts & Classification


Example:

2 Model of notebook Acer 5530 & Acer 5130 isp roduced by
B-ZiT Company. The Following costs have been estimated.

                                                                                               Acer 5530               Acer 5130
Direct Material / Unit                                                                   RM1400                  RM1200
(Motherboard, Rams, Graphic Card, Cd/Dvd-rom)


Direct Labour / Unit (RM20 Per hour)                                           4.0 Hour                  4.0 Hour


Direct Expenses / Unit (Royalties For Copyright)                               RM20                     RM20   
Direct Cost                                                                               RM1880                  RM1680


Indirect Material / Unit ( Wires, Cable, Etc )                              RM100                    RM80
Indirect Labour (Storekeeper wages)                                        RM 48                     RM48


Indirect Expenses / Unit 
(Administration, Selling and Distribution)                                 RM150                    RM120   
Indirect Cost:                                                                         RM298                    RM248




Direct Cost + Indirect Cost = Fixed Cost??? Cuba tanya diri sendiri (LOL)