Types of Costs and their Basis of Classification
Cost classification can be done in various ways depending on its nature and a specific purpose. There are various types of costs classified into logical groupings. These groups are …
Costing Terms
Inventoriable and Period Costs
Inventoriable and period costs are also a type of classifications of costs. Inventoriable costs can be defined as costs which become part of inventories such as raw material, work …
Relationship of Direct & Indirect Costs with Fixed & Variable Costs
The relationship of direct & indirect costs with fixed & variable costs is a very crucial concept to understand for doing a real interpretation of costs in any manufacturing …
Cost Drivers
In simple terms, cost driver can be defined as the driver of cost. Just like a driver drives the car, cost driver drives the cost. Cost driver has a …
Variable and Fixed Costs
Variable Costs and Fixed Costs are a type of classification of costs based on their behavior pattern in relation to volume or activity of the business. In short, total …
Direct and Indirect Costs
Understanding the concept of direct and indirect cost is very important from the viewpoint of assignment of various costs to a product or products (the cost objects). Most important …