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cost classification by Mind Map: cost classification

1. it is known for the whole company or for a set of products. It's hard associate them with a specific product or service

2. Relevant Costs

3. relevant costs are those that are modified when making one or the other decision. On occasions coincide with variable costs

3.1. Non-Relevant Costs

3.1.1. son aquellos costos que independiente de la decisión que se tome en la empresa permanecerán constantes. En ocasiones coinciden con los costos fijos

4. Production costs

4.1. are classified into

4.1.1. direct raw material

4.1.1.1. Direct Labor

4.1.1.1.1. costos indirectos de fabricación

4.1.1.1.2. the effort exerted by employees in the production process, through which raw materials are transformed

4.1.1.2. set of materials that will be subjected to transformation during the production process

5. Distribution Costs

5.1. are those that are generated by taking the product or service to the final consumer

5.1.1. packaging

5.1.1.1. the storage

5.1.1.1.1. and the transport

6. Administration Costs

6.1. are those generated in the administrative areas of the company

7. Financing costs

7.1. are those generated by the use of capital resources

8. direct

8.1. are the costs that can be easily identified with the product, service, process or Department. Direct costs are Direct Material and Direct Labor

9. Indirect

10. Historical

10.1. are past costs, which were generated in a previous period

10.1.1. Defaults

10.1.1.1. are costs that are calculated based on statistical methods and that are used to prepare budgets

10.1.1.1.1. Period costs

11. According to the control you have over your consumption

11.1. Controllable Costs

11.1.1. They are those costs on which the organization's management (either supervisors, assistant managers, managers

11.1.1.1. Uncontrollable Costs

11.1.1.1.1. are those costs over which there is no authority for their control. Example the value of the lease to pay is an uncontrollable cost

12. According to its importance in organizational decision making

13. De acuerdo con el tipo de desembolso en el que se ha incurrido

13.1. Out-of-pocket costs

13.1.1. are those that generate a real cash outflow

13.1.1.1. Opportunity costs

13.1.1.1.1. is the cost that is generated when making a determination that entails the resignation of another alternative

14. According to the type of cost incurred

14.1. Disbursable

14.1.1. involved an outflow of cash, for which they can be registered in the information generated by accounting

14.1.1.1. Of opportunity

14.1.1.1.1. It originates when making a certain decision, which causes the resignation of another option type

15. According to their behavior

15.1. In relation to the volume of activity: that is, its variability

15.1.1. Fixed costs

15.1.1.1. are those costs that remain constant over a period of time determined, regardless of production volume

15.1.1.1.1. Variable costs