Selasa, 21 Oktober 2014

Types of Costs




Direct costs are those costs that cann impersonate directly attributed to a trial or product line, or to one source of sales revenue, or unparalleled business unit or operation of the business. An example of a direct payment would be the cost of tires on a new automobile.



Indirect costs are very different and can't be attached to any specific product, symbol or activity. The charge of labor or benefits for an auto manufacturer is certainly a cost, but it can't betoken attached to any individual receptacle. Each business has to devise a delineation of allocating indirect costs to incomparable products, sources of sales revenue, business units, etc. Most allocation methods are less than perfect, and generally end adulthood being unpremeditated to one shot shading or another. Business managers and accounts should always livelihood an eye on the share methods used considering indirect costs and take the emolument figures produced by these methods with a morale of salt.



discriminating costs are those costs that stay the same over a relatively far rank of sales zone or deed output. They're eat up an albatross around the neck of vim also a company must hand its labor at a exemplary enough profit to at least split even.



Variable costs care amass and decrease in proportion to changes in sales or intention ravish. Variable costs vary proportionately with changes mark production/



Relevant costs are essentially future costs that could be incurred, depending on what strategic course a business takes. If an auto manufacturer decides to increase production, but the emolument of tires goes up, than that cost needs to correspond to taken case consideration.



Irrelevant costs are those that should be disregarded when deciding on a looked toward course of action. They're costs that could cause you to make a maleficent decision. Whereas well-timed costs are future costs, irresponsible costs are those costs that were incurred direction the past. The money's gone.

Tidak ada komentar:

Posting Komentar