Classification of Costs
Classification of cost means, the grouping of costs according to their common characteristics. The important ways of classification of costs are:
- By nature or element: materials, labor, expenses
- By functions: production, selling, distribution, administration, R&D, development,
- By traceability: direct and indirect
- By variability: fixed, variable, semi-variable
- By controllability: controllable, uncontrollable
- By normality: normal, abnormal
- By Decision making Costs
- Time of Occupation
Read more about this topic: Cost Accounting
Famous quotes containing the word costs:
“It is commonly said by farmers, that a good pear or apple costs no more time or pains to rear, than a poor one; so I would have no work of art, no speech, or action, or thought, or friend, but the best.”
—Ralph Waldo Emerson (1803–1882)