Cost Accounting Grade 11

Direct Material

• The sum of prime costs and factory overheads

• Costs that do not form an integral part of the final product

• Cost of the main ingredients of finished products

• Salary of the factory manager

Indirect Labour

• Cost of the main ingredients of finished products

• Salary of the factory manager

• Costs that do not form an integral part of the final product

• The sum of prime costs and factory overheads

Factory Overheads

• The total indirect factory expenses

• Wages of the workers involved in the production line

• Cost of the main ingredients of finished products

Indirect costs

• The sum of prime costs and factory overheads

• Cost of the main ingredients of finished products

• Costs incurred for office management, legal charges, stationery, etc.

• Costs that do not form an integral part of the final product

Prime Cost

• Wages of the workers involved in the production line

• The total indirect factory expenses

• Direct labour + Direct material

Total production cost

• Cost of the main ingredients of finished products

• The total indirect factory expenses

• Costs incurred for office management, legal charges, stationery, etc

• The sum of prime costs and factory overheads

Direct labour

• Wages of the workers involved in the production line

• Salary of the factory manager

• Costs incurred for office management, legal charges, stationery, etc.

Administration Costs

• The total indirect factory expenses

• Costs incurred for office management, legal charges, stationery, etc

• Cost of the main ingredients of finished products

• Costs that do not form an integral part of the final product