Cost ManagementIt is the cost which we relate to cost objects as it attributes to many objects and elements. It is the difficulty which we face allocating the cost concerning those many elements as we should distribute the indirect costs such fairly and regularly. It is the regular distribution which helps to make correct costs and accurate inventory; it helps the balance sheet maintaining its profit value including tax. It is available to make such a regular distribution dividing the salaries among the employees and workers, it is appropriate to evaluate them considering their production. To calculate the hour, you should make the total salary dividing it to the production. We have to consider that hours may include controlling hours and training hours so; we should observe that those hours have their rules. It is the role which the balance sheet plays as it traces the employees and workers and follows their production. If those workers enjoy such training and controlling hours, the cost is omitted. Concerning drivers, the cost drivers drive the cost changing it maintaining a causative relationship between the cost and elements.Relevant cost; concerning future. It is the relevant cost which relates to future. It represents the information which can affect decisions so; it accepts options and changes accordingly such prospectively. For example, registration fees. It is the sunk cost which considers historical costs and ignores decisions. For example, spent tuitions. Controllable cost; supposing authority. It is the controllable cost which supposes that the manager has its complete authority to control the object. It concerns the level which the manager represents and time which the cost includes. Avoidable cost; it is the cost which is avoided when the manager disables decisions and production. It may cause such reflexive results which affect the company. If the manager refuses to make decisions, it is the cost which will be inefficient. It is the cost which can be avoided when the manager continues making decisions such efficiently. For example, reducing hours. The reduced hours are avoided. Committed cost; it is the cost which must be paid. It concerns contracts which suppose paying investments to enjoy services and facilities. It is essential to record that cost and observe it as compulsory costs. Manufacturing cost; actual cost. It is the actual cost which may differ; however, it differentiates such monthly or periodically provided that it is a short period. Manufacturing overhead; fixed cost. It is the actual cost which includes manufacturing overhead so, it supposes such a delay. That delayed information is attributed to delayed contracts and bills. Standard cost; supposed cost. When applying the standard cost, it is the variance which appears. Standard cost; standard overhead. It is the standard cost which represents standard materials and labors. When comparing the standard cost to the actual cost, it is the variance which may differentiate clearly. Manufacturing overhead; variable and fixed costs. It is the manufacturing cost which accepts the variable budget and fixed one. It is recommended to make the budget plan for the overhead and driver dividing the plan for overhead by the plan for the driver to reach the cost. The applied overhead; applied manufacturing. It is the applied manufacturing which represents the actual production which includes finished goods and supposed hours. The applied overhead rate; standard rate for the overhead per hour. It is recommended to overhead your production; whether it is finished or delayed to estimate its expected manufacturing overhead. To summarize, it is advisable to charge the material as an entry and convert it from its raw nature to a cost when it leaves the store to manufacturing. As explained, you should charge the labors as an entry and consider them as representing a cost when they begin working. Overhead; manufacturing. It is the overhead which relates to manufacturing as the manufacturing process indicates to its activity. In manufacturing, we have suppliers who provide raw materials. These materials increase the stored assets which increase the inventory. When manufacturing, it is the first step which represents taking materials. It is obvious that having materials leads to decreasing the inventory and increasing the work process. To gather these materials, it is required to assign labors who must have their wages. It is the work and production which endure these wages although they begin their estimation. Manufacturing overhead; work process and production stage. After production, it is the applied overhead which begins. Applied overhead; standard overhead. Manufacturing overhead control; an account. It is the overhead control which includes the actual costing. It includes rents and wages. Under applied manufacturing overhead; under absorption; debits. Over applied; over absorption; credits. All companies; raw materials, work processes and finished goods.