What Is The Difference Between Material Cost And Labor Cost? All the costs incurred can be classified into these three categories. Material means all kinds of material used for the production of a product or service, labor means all types of human labor and expenses means all the remaining costs not falling under material and
Is Labour Cost A Relevant Cost? The costs incurred last year (material, labour, and overheads) are not relevant to the decision. They are examples of past (sunk) costs. The original costs are not avoidable and are common to all alternatives. What costs are considered relevant? ‘Relevant costs’ can be defined as any cost relevant to
What Is Expense Matching? The matching principle What is matching expenses with revenue? The matching principle requires that revenues and any related expenses be recognized together in the same reporting period. Thus, if there is a cause-and-effect relationship between revenue and certain expenses, then record them at the same time. What is the expense matching