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    Operating Cost: Introduction Guided By: Prepared By: Dr. Vedant Pandya Disha Salot Submitted To

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    Disha
    This document provides an introduction to operating costs. [1] It discusses how operating costs are associated with manufacturing companies and service industries like transportation, utilities, and welfare services. [2] A key concept is that operating costs ascertain the cost of rendering services, and the cost unit used is usually a double unit like per passenger kilometer or per patient day. [3] The document gives examples of simple and composite cost units for different service industries like transportation, electricity, and hotels.

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    Operating Cost: Introduction Guided By: Prepared By: Dr. Vedant Pandya Disha Salot Submitted To

    Uploaded by

    Disha
    27 views13 pages
    This document provides an introduction to operating costs. [1] It discusses how operating costs are associated with manufacturing companies and service industries like transportation, utilities, and welfare services. [2] A key concept is that operating costs ascertain the cost of rendering services, and the cost unit used is usually a double unit like per passenger kilometer or per patient day. [3] The document gives examples of simple and composite cost units for different service industries like transportation, electricity, and hotels.

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    Costing

    Original Title

    12.CMA.disha

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    This document provides an introduction to operating costs. [1] It discusses how operating costs are associated with manufacturing companies and service industries like transportation, utilities, and welfare services. [2] A key concept is that operating costs ascertain the cost of rendering services, and the cost unit used is usually a double unit like per passenger kilometer or per patient day. [3] The document gives examples of simple and composite cost units for different service industries like transportation, electricity, and hotels.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    27 views13 pages

    Operating Cost: Introduction Guided By: Prepared By: Dr. Vedant Pandya Disha Salot Submitted To

    Uploaded by

    Disha
    This document provides an introduction to operating costs. [1] It discusses how operating costs are associated with manufacturing companies and service industries like transportation, utilities, and welfare services. [2] A key concept is that operating costs ascertain the cost of rendering services, and the cost unit used is usually a double unit like per passenger kilometer or per patient day. [3] The document gives examples of simple and composite cost units for different service industries like transportation, electricity, and hotels.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 13

    OPERATING COST : INTRODUCTION

    Guided by:
    Prepared by: Dr. Vedant Pandya
    Disha Salot

    Submitted to:
    Department Of Business Administration
    M.K.B.U. , Bhavnagar.
     Meaning of cost :

     Meaning of costing

     Meaning of cost accounting


    INTRODUCTION OF OPERATING COST

     Associated with manufacturing companies.

     Modern time, associated with service industries


    also

     ascertainment of cost of rendering services.

     cost unit used is a double unit


    Meaning / definition of Operating Cost

     Cost of rendering or providing a service.

     Service costing

     Definition :
    By CIMA
    By ICWA ( cost accounting standard 1)
    Features of operating costing

     Uniform service
     Two types of costs
     Classification of cost
     No physical stock
     Authentic documents
     Rendering service
     Method
    APPLICATION OF OPERATING
    COSTING
     TRANSPORT SERVICE
    (Ex : Truck operators, road transport, Railways,
    Airlines, etc.)

     SUPPLY SERVICE
    ( Ex: electricity, steam, gas, water,etc.)

     WELFARE SERVICE
    ( Ex : Restaurant, Housekeeping, Laundry,etc.)
    What is Cost Unit ?
     Quantitative unit
     In relation cost measured

    COST UNIT

    SIMPLE COST UNIT COMPOSITE COST UNIT


    EXAMPLES OF SIMPLE COST UNIT
    Service Simple Cost Unit
    Industries
    Passenger Per Kilometer
    Transport
    Goods Transport Per Kilometer
    Road Maintenance Per K.M. of road
    maintained
    Water Supply Per Kilo Liter of Water
    Supplied
    Canteen Per Meal / Dish
    EXAMPLES OF COMPOSITE COST UNIT

    Service Industries Composite Cost Unit


    Electricity Per Kilowatt – Hour

    Steam, Gas Per K.G. / Cubic Ft.

    Hospital Per Patient – Day


    Library Per Member – Book
    TRANSPORT ORGANIZATION
    ELECTRICITY GENERATION
    HOTELS & CATEENS

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