Classificati

on
of costs
Reference: Cost accounting and control by De Leon
 Classification of costs
RELATION RELATION TO
PLANNING,
RELATION TO
TO A CONTROL AND
VARIABILITY MANUFACTURING NATURE AN
ANALYTICAL
ACCOUNTING
PRODUCT DEPARTMENTS
PERIOD
PROCESSES

A.Manufacturing A.Variable costs A. Direct A. Common costs A.Capital A.Standard costs

costs/product costs department expenditures
B.Fixed costs charges B. Joint costs B.Opportunity
1.direct materials B. Revenue costs
1.committed B. Indirect expenditures
2.direct labor
2.managed department C.Differential
3.factory overhead
C.Mixed costs charges costs

1.semi-variable D. Relevant costs

B. Non- 2.step cost
manufacturing E. Out-of-pocket
costs/period costs cost
1. Marketing/
F. Sunk cost
Selling expenses
2.General or
G. Controllable
administrative
cost
expense
Thank you.