What is Cost Accounting ?

The total cost of raw material changes if the production increases or decreases. But per unit cost of raw material remains same even if the production increases or decreases.

In semi-variable costs, both components are present. Semi-variable costs are the combination of fixed costs and variable costs.

Let’s say that you pay $1000 per month as fixed salary to all your workers and the workers who produce more than 50 units of toys every month, they get an additional $5 for every additional unit produced.

This sort of wages will be called semi-variable wages.

Cost Accounting Examples and Format


Cost accounting is much more than a cost statement. But still, cost accounting example will give us an idea about how to calculate the cost of sales per unit for a particular product....