Cost Accounting

cost normally incurred at a given level of output

Cost not normally incurred at a given level of output

Cost which is charged to customer

Cost which is included in the cost of the product

Direct material cost

Indirect material cost

FOH cost

Prime cost

Zero-base budgeting is a technique applied in government budgeting in order to have a neutral effect on policy issues

Zero-base budgeting requires a completely clean sheet of paper every year, on which each part of the organization must justify the budget it requires

Zero-base budgeting starts with the figures of the previous period and assumes a zero rate of change

Zero based budgeting is an alternative name of flexible budget

Rs. 40,000

Rs. 30,000

Rs. 20,000

Rs. 10,000