Cost concepts and classifications: behaviour, cost object, product/period, past/future

What this note covers

1. Materials, labour and overheads: the three cost elements
2. Cost behaviour: fixed, variable and mixed
3. Relationship to cost objects: direct and indirect
4. Treatment of costs: product and period
5. Time orientation of costs: past and future
6. Worked example: classifying costs for a fictional surfboard maker
7. How this topic is examined

7 sections · 12 key terms & formulas · 6 common mistakes