Methods of recording and analyzing costs to control spending and improve profitability.
cost of goods sold (COGS) – the direct costs attributable to the production of goods sold by a company.
direct cost – a cost that can be directly attributed to a specific product or service.
indirect cost – a cost that is not directly accountable to a product (e.g., overhead).
overhead – ongoing business expenses not directly attributed to creating a product or service.
fixed cost – a cost that does not vary with production volume.
variable cost – a cost that varies directly with production volume.
break-even point – the production level at which total revenues equal total expenses.
cost allocation – assigning of a cost to multiple cost objects.
marginal cost – the cost of producing one additional unit of a product.
Jakub Marian
Jakub Marian