Definition of Costs

Costs can be defined as the

amount of expenditure made in
order to secure some goods or
services
 Selected Cost Classification
• Product costs and period costs
• Direct and Indirect costs
• Prime cost and Overheads
• Fixed and Variable cost
 Manufacturing and non
manufacturing costs

• Direct Materials

• Direct Labour Total Manufacturing

costs
• Manufacturing Overhead
Full costs
• Selling expenses
Total Non manufacturing
costs
• General and Administrative
Expenses