Giving examples in each case,,, explain the meaning of the following elements of cost, material cost, labour cost, overhead cost

1. Material cost: Material cost refers to the expenses incurred in purchasing materials and supplies needed for production. Examples of material costs include raw materials, components, packaging materials, and any other items used in the manufacturing process. For instance, in a furniture manufacturing company, the cost of wood, screws, nails, and finishing materials would all be considered material costs.

2. Labour cost: Labour cost is the amount of money spent on wages and salaries for employees involved in production or providing services. This includes direct labor costs for workers directly involved in manufacturing goods or delivering services, as well as indirect labor costs for employees such as supervisors, maintenance staff, and administrative personnel. For example, in a bakery, the wages of bakers, kitchen assistants, and delivery drivers would all be considered part of the labour cost.

3. Overhead cost: Overhead cost includes indirect expenses that are necessary for the operation of a business but cannot be directly attributed to a specific product or service. Examples of overhead costs include rent, utilities, insurance, depreciation, and administrative expenses. In a retail store, overhead costs may include expenses for maintaining the store premises, advertising and marketing costs, salaries of non-sales staff, and other general expenses necessary to keep the business running.