Direct wages. 22. In account ting for labour cost: a. Direct labour cost and indirect labour cost are charged to prime cost. B. Direct labour cost and indirect labour cost are charged to overheads. c. Direct labour cost is charged to prime cost and indirect labour cost is charged to overheads. d. All of the above. Costing is simply determining costs by using any method like arithmetic process, memorandum statements, etc. Cost Accounting, on the other hand, denotes the formal accounting mechanism by means of which costs are ascertained by recording them in the books of account. ness doesn't record the cost of the products sold as an expense until sales revenue is recorded, even though the business paid out cash for the products weeks or months earlier. Furthermore, with accrual-basis accounting, a business records operating expenses as soon as they're incurred (as soon as the business has a liability for the Cost Accounting Standards: Overview and Best Practices Joseph G. Martinez K. Tyler Thomas October 10, 2017. Agenda • CAS 414 - Cost of Money as an Element of the Cost of Facilities Capital • CAS 416 - Accounting for Insurance Costs • CAS 417 - Cost of Money as an Element of the Cost of Learning outcomes & weighting 1. Understanding the cost recording system within an organisation 20% 2. Use cost recording techniques 60% 3. Provide information on actual and budgeted costs and income 20% Total 100% P.2 KAL.NU.NBL.ISSLSSHLGN P.2 KAL.NU.NBL.ISSLSSHLGN KAPLAN PUBLISHING 3 Pass mark outputting cost and management accounting data by computer 3 Cost classification and cost behaviour (a) Describe the variety of cost classifications used for different purposes in a cost accounting system, including by responsibility, function, direct/indirect, behaviour (b) Explain and illustrate the nature of variable, fixed and COST ACCOUNTING . PREFACE . INTRODUCTION . The Council of the Association of Accountancy Bodies in West Africa (ABWA) recognised the difficulty of students when preparing for the Accounting Technicians Scheme West Africa examinations. One of the major difficulties has been the nonavailability of study materials - ELEMENTS OF COST: MATERIAL. Cost accounting is a systemized approach of recording and reporting cost measurements in the process of manufacturing goods and performing services in the aggregate and in-depth. Cost accounting includes systems for recognizing, classifying, allocating, aggregating, and reporting the costs and then comparing them with the standard costs. Cost Accounting: It is the method of accounting for cost. The process of recording and accounting for all the elements of cost is called cost accounting. I.C.M.A. has defined cost accounting as follows: "The process of accounting for cost from the point at which expenditure is incurred or committed to the Elements of Cost Accounting - Top 7 Elements: Direct Material Cost, Direct Wages, Chargeable Expenses, Indirect Material, Indirect Labour, Indirect Expenses and Overheads. In order to exercise proper control of costs for sound managerial decisions, the manage­ment may be provided with necessary data. Cost classification is the process of grouping costs according to their common characteristics. A suitable classification of costs is very helpful in identifying a given cost with cost centers or cost units. Cost may be classified according to their nature, i.e., material, labour and expenses and a number of other charac