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About Cost Concepts Relating to Profit Planning-
In a very basic language we can explain that cost concept is a part of cost accounting as it will determine whole of cost that is needed for accounting. It is done within internal reporting that is needed for management purposes. Its tools are used for identifying costs for products and services per unit. It is used to prepare proper and correct analysis of cost. It is also done to determine the selling price of products and services.
In cost concepts our mentors of Cost Concepts Relating to Profit Planning Homework Help take special care to explain all needed fields of profit planning that is sub- divided into five basic parts namely-
- Fixed costs:
These are the costs that do not change in output volume within their specific activity range in a given budgeted time frame like land rate, insurances on property etc.
- Semi- variable costs:
Costs those are neither fixed nor variable in relation to production volume. This is also called as mixed cost. For example, electricity, maintenance etc.
- Budgeted costs:
It is as and when operating plans gets involved with future costs for a specific period of time.
- Variable costs:
The costing that do vary with the changes in production process or sales. For example, labour charges, charges for raw materials etc.
- Future costs:
These are the costs that are for sure to be there in future due to present decisions and are called as future costs for this reason.
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