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:
“To exercise power costs effort and demands courage. That is why so many fail to assert rights to which they are perfectly entitled—because a right is a kind of power but they are too lazy or too cowardly to exercise it. The virtues which cloak these faults are called patience and forbearance.”
—Friedrich Nietzsche (1844–1900)