Managerial Cost

MANAGERIAL COST Introduction Refers to internal cost information used by managers for planning, decision-making, and control . Focuses on cost efficiency , performance evaluation , and strategic financial decisions . Unlike financial accounting, it is not shared externally . Types a) Fixed Costs Do not change with the level of output. Examples: Office rent, equipment depreciation, salaries of top-level executives. b) Variable Costs Fluctuate directly with production or service levels. Examples: Cost of raw materials, medical supplies, electricity for machines. c) Semi-Variable Costs (Mixed Costs) Include both fixed and variable components. Examples: Telephone bills (fixed rental + usage), repair and maintenance charges. d) Direct Costs Costs that can be directly linked to a specific product, service, or department. Examples: Medicine used for a particular patient, salary of...