Question

Material, Labour and Expenses are the three important _______ of cost.
A] Methods B] Elements C] Techniques​

Answer 1

They are the important elements of cost.

• These elements are those elements which typically constitute the total cost of manufacture of a commodity.
• In a manufacturing company, the firm uses labour and other services to convert raw materials into a finished commodity. Thus, all the three elements are crucial.
• These elements can be both direct and indirect. Such as -

1. Direct Labour and Indirect labour
2. Direct Material and Indirect Material
3. Direct Expenses and Indirect expenses

Answer 2

Three elements of Costs are

Labour

• Labour It is one of the important aspects of work.
• First of all, before planning and setting up works we have to identify whether specific Labour are available for work in that area or not.

Material

• It is also one of the important aspects as the materials are available in abundance or less.
• How much distance and how much cost is needed to reach Materials at the factory.

Expenses

• It is machinery cost that machines cost.
• The cost of setting up is the cost to set up the machines in the factory.
• Materials cost is the cost of the materials needed for work.
• Labour cost It is the cost of labour which is to be paid for their work.