Production cost: Difference between revisions

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imported>Doug Williamson
(Create page. Sources: linked pages and P Scott Accounting for Business 3rd edition.)
 
imported>Doug Williamson
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Total production cost is often defined as the total of Prime cost and Indirect overhead cost.
Total production cost is often defined as the total of Prime cost and Production overhead cost.
 
So defined, Production cost, together with Period cost, comprise total cost.





Latest revision as of 18:15, 10 February 2019

Cost and management accounting.

1.

Total production cost is often defined as the total of Prime cost and Production overhead cost.

So defined, Production cost, together with Period cost, comprise total cost.


2.

The term 'production cost' may also be defined more broadly, or more narrowly, than this.

Here as elsewhere, consistency of definition and of calculation are essential to producing meaningful comparable figures.

The only safe approach is set out calculations in a clear manner that colleagues can understand and validate. In an educational assessment context, this means showing your workings.


See also