Contents

• Introduction
• Direct costs
• Indirect costs
• Standard costing
• Budgeted Costing
• Process costing
• Job order costing
• Activity Based Costing (ABC)
• Segmentation
• Averaging technique for Direct Cost
• “Direct costs are controllable while indirect costs are hard to control”
• Conclusion
• References

Description

Costing is used by the firm or management which establishes budgeted, standard, and actual cost of production, processes, operations, products, or departments. For a better understanding of this concept we bring in “XYZ manufacturing Private Ltd.” a pseudonym for the Organization. The company deals into Clothes manufacturing; we will analyze and interpret cost and management control within the organization.
Costing analysis used by the managers, help them to support for decision making in terms of cost control and management control. Cost is a measurement of the resources used for production of goods and services rendered, in monetary terms. For any of the firm there are two kinds of costs.