Classification of Costs based on Functions / Activities
There is the various classification of costs. It could be based on nature, traceability, functions, behavior, purpose, production process, and costs period. In this… Read Article
Material, Labor and Expenses – Classification Based on Nature of Costs
The material, labor, and expenses are the common way of classifying costs of any manufacturing business based on the nature of cost. All the… Read Article
Types of Costs and their Classification
Cost classification can be done in various ways depending on its nature and specific purpose. There are various types of costs classified into logical… Read Article
Inventoriable and Period Costs
Inventoriable and period costs are also a type of classification of costs. Inventoriable costs can be defined as costs that become part of inventories… Read Article
Types of Costs and Relationship of Direct & Indirect Costs with Fixed & Variable Costs
Broadly types of costs are classified as direct and indirect, fixed and variable, etc. The relationship of direct & indirect costs with fixed &… Read Article
Cost Drivers
What is Cost Driver?A cost driver is a basic costing term. Let’s first look at its technical definition. A cost driver is that factor… Read Article
Variable and Fixed Costs
Variable Costs and Fixed Costs are a type of classification of costs based on their behavior pattern with the volume of activity of the… Read Article
Direct and Indirect Costs
Understanding the concept of direct and indirect cost is very important from the viewpoint of assignment of various costs to products (the cost objects).… Read Article
Types of Invoice / Receivable Factoring
There are various types of factoring based on variations in the different services and agreements between the business and the factor. Such different types… Read Article
Economic Value Added (EVA) – The Measure of Real Wealth Creation
Economic value added is a concept defined to measure the performance of a firm’s management in creating value or wealth for the shareholders. We… Read Article
Cost of Equity – Capital Asset Pricing Model (CAPM)
The cost of equity is estimated using Sharpe’s Model of Capital Asset Pricing Model. The model finds the cost of capital by establishing a… Read Article