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What are Costs
Costs mean an expression of financial value of all consumed inputs when producing goods, services or any other supporting activities or processes in the company.

Costs means the financial value of all consumed inputs into production of something. It could be production of Products or services or perfoming any other supporting activities or processes in the company. Costs is the sum of financial value that an organization has effectively spent on making revenue, regardless of whether they were actually paid in the period. Costs can also be expressed as consumption resources (material, work effort, utilities, services or risks incurred)

All expenses are costs, but not all costs are expenses.

What are the basic types of costs?

** Cost Calculation Breakdown ** - Breakdown Used in Management Accounting management accounting}, controlling:

Breakdown of costs according to the volume of performance:

They are also often divided according to whether they value property to:

  • Operating costs (Operational expenditure)
  • Investment Costs (Investment Expenses)

Other cost types are:

Why do we need to know costs?

Cost tracking is one of the basic necessities of any organization. It is up to her to consider in what detail the costs will be tracked for her own purposes (Management Accounting Managerial Accounting). In most countries, the basic cost tracking structure is Legislation legislation for the purpose of bookkeeping. Costs along with Revenue Revenue} profit.

Related terms and methods:

Related management field:

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Last update: 05.05.2019

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