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Classification of cost (By costs for Managerial Decision Making (Pre…
Classification of cost
By Functions
Prime cost
Factory Cost or Works Cost
Cost of Sale
Cost of Production
Cost of Goods Sold
By Variability or Behaviour
Variable Costs
Fixed Costs
Semi-Variable Cost
By Controllability
Controllable Cost
Uncontrollable Cost
By Normality
Normal Cost
Abnormal Cost
By costs for Managerial Decision Making
Pre-determined cost
Computed before production cost, based on specifications of all factors affecting cost
Standard Cost
Predetermined cost on the basis of Management Expectations
Marginal Costs
the amount by total cost changes in case of increase or decrease output volume
Estimated Costs
Expected per unit cost of manufacture , computed on information of actual production
Differential Costs
the amount by total cost changes in case of increase or decrease in level of activity, technology, Process and method of production
Imputed Costs
Notional Cost that do not have any cash outlay e.g. Interest on capital
Period Costs
All non-manufacturing costs, not assigned to products but charged as expenses against revenue
Discretionary cost
Not tied to clear cause and effect relationship. e.g. advertising, public relations,training
Absolute Cost
Cost of any product, process or unit in its totality. Used for analysis and Decision making
Engineered Cost
Tied to cause and Effect relationship