Meaning of Material Cost :
It is the classifying, recording, and appropriate allocation of expenditure for the determination of the costs of products or services, and for the presentation of suitably arranged data for purposes of control and guidance of management. It includes the ascertainment of the cost of every order, job, contract, process, service, or unit as may be appropriate. It deals with the cost of production, selling, and distribution.
It is thus the provision of such analysis and classification of expenditure as will enable the total cost of any particular unit of production or service to be ascertained with a reasonable degree of accuracy and at the same time to disclose exactly how much total cost is constituted (i.e. the value of the material used, the amount of labor and other expenses incurred) so as to control and reduce its cost.
Learn Material Cost from the below link with solved examples.
|Stock Level||Labour Cost|
|Gantt Task Bonus Plan||Labour Variances – Standard Costing|
|Rowan Premium Plan||Standard Costing – Material Variance|