Scribd Logo
Upload

Welcome to Scribd!

  • Cost Analysis

    Uploaded by

    Lahari Tummala
    12 views10 pages
    This document defines and categorizes various types of costs that are relevant for business analysis including fixed costs, variable costs, total costs, marginal costs, explicit costs, implicit costs, opportunity costs, sunk costs, direct costs, indirect costs, average costs, recurring costs, non-recurring costs, and cash costs. It provides definitions and explanations of each cost type based on factors such as the nature of the cost, behavior of costs, relevance for decision making, and elements that make up the cost.

    Original Description:

    Types of Costs

    Original Title

    CostAnalysis

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document defines and categorizes various types of costs that are relevant for business analysis including fixed costs, variable costs, total costs, marginal costs, explicit costs, implicit costs, opportunity costs, sunk costs, direct costs, indirect costs, average costs, recurring costs, non-recurring costs, and cash costs. It provides definitions and explanations of each cost type based on factors such as the nature of the cost, behavior of costs, relevance for decision making, and elements that make up the cost.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    12 views10 pages

    Cost Analysis

    Uploaded by

    Lahari Tummala
    This document defines and categorizes various types of costs that are relevant for business analysis including fixed costs, variable costs, total costs, marginal costs, explicit costs, implicit costs, opportunity costs, sunk costs, direct costs, indirect costs, average costs, recurring costs, non-recurring costs, and cash costs. It provides definitions and explanations of each cost type based on factors such as the nature of the cost, behavior of costs, relevance for decision making, and elements that make up the cost.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 10

    COST ANALYSIS

    Fixed cost Opportunity Short-Run & Recurring,


    sts Costs Long-Run Nonrecurring
    Variable cost Explicit co Direct Costs Costs
    sts Sunk Costs Incremental
    Total cost Implicit co Indirect Costs Average Cost costs
    Marginal cost Cash costs
    On the basis of nature of cost

    Fixed cost Variable cost Total cost Marginal


    The costs associated The costs directly Fixed cost cost
    with your business’s related to the sales +
    product that must be volume of your Variable cost
    paid regardless of business.
    how much you sell.
    According to the behavior of costs

    Explicit cost Implicit cost


    Explicit costs occur when the company Implicit cost refers to the cost of using self-
    pays for the usage of its factors of owned inputs.
    production.
    On the basis of relevance of decision making

    Opportunity cost Sunk cost


    Opportunity Cost is the thing that is given Costs incurred in the past cannot be
    up when given a choice. changed.
    On the basis of elements of cost

    Indirect Costs
    Direct costs
    A price that can be completely attributed to An Indirect costs are not directly accountable to
    the production of specific goods or services. a cost object(such as a particular project,
    facility, function or product).
    Average costs
    • Average total cost :

    • Average fixed cost :

    • Average variable cost :


    Other Costs

    • Recurring Costs: It is a regularly occurring cost or estimated cost which


    is documented with one record – A Recurring cost record.
    Other costs
    • Non recurring costs : Costs that occur on a one-time basis, and are
    unlikely to occur again in the normal course of business.

    • Cash costs : It is a cash basis accounting cost recognition process that


    classifies costs as they are paid for in cash, and is recognized in the
    general ledger at the point of sale.

    You might also like