Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Describe the main classifications of cost?

user-image
Question added by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town
Date Posted: 2014/03/04
Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

 

  1. The nature of the cost, such as those that can be identified for materials, labour and expenses, and those for materials that can be divided into the different types of raw materials, maintenance materials, cleaning materials, etc.

  2. The function of costs, such as production costs, administration costs, selling and distribution costs.

  3. Whether they are product costs, which can be identified with the cost unit and are part of the value of inventory, or period costs, such as selling costs and administrative expenses, which are deducted as expenses in the current period.

  4. Whether they are direct costs, which can be identified with a specific cost unit, or indirect costs, which cannot be identified with a specific cost unit, although they may be traced directly to a particular cost centre.

  5. The behaviour of the cost and whether they are variable costs, which in total change in proportion with the level of production activity or fixed costs, which are not changed by fluctuations in production levels.

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.