classification of Cost

To produce something whether it is goods or services, then it needs a calculated and known the magnitude of the cost or the need and the possibility of obtaining revenue which may be accepted. Every sacrifice costs always expected would bring bigger results than on who was sacrificed on the future.

Thus, an entrepreneur should be aware of how the magnitude of the sacrifice in the production process, so that the ingredients raw goods could become so with upholding the quality of production, basically every the production process which is a component of the cost of the changes. In this case, total costs can always be calculated and can be compared with the total enrollment may be obtained.

Speaking on the issue of costs is an issue that is quite extensive, therefore in them look two parties who are related to one another in the production process. When we pay attention to the costs that must be exited right to a process of production, then it can be split into two properties, that is, which is the cost for producers was received for those who give the factors of production are concerned.

The case for the consumer, the cost for acquiring the tools required for the satisfaction which gives satisfying tool needs.

"Costs (cost) is the amount that is measured in units of money, i.e. a number of expenditure-expenditure in the form of constant or in the form of the transfer of wealth to earn something with capital expenditure process or stock, the services included or obligations incurred, in relation to the goods or services procured or to be procured during the coming ".

From this definition, then it can be said that the notion that raised costs is a thing that is still the notion widely because of all that belongs to the element of expenditure.

The cost is:

"The costs are considered will provide benefits or service potential in the future and therefore constitutes the assets included in the balance sheet. Rather expense cost is a cost that has been used to make accomplishment. Because the types of costs it can no longer provide benefits on upcoming, then their place is at the approximate profit loss "

Classification Of Costs

The main companies in financial management in the production process would of course require a fee, due to the cost accounting aims to present cost information is needed so that they can manage the management company or its part in effective in taking down and subsume the costs must always be noticed for what purpose requires management of information costs.

Classification costs there are certainly the concept of costs that can meet a variety of objectives and other costs associated with the entire so that goods that arrive at the market or in the market. Therefore in cost accounting there are a variety of ways its costs as follows:

1. Classification of the costs on the basis of objects of expenditure.
2. cost Classification on the basis of principal functions within the company.
3. Assignment costs over relationship costs with the goal of something that is financed.
4. cost Classification on the basis of the relationship of costs by something that is financed.
5. cost Classification on the basis of time.