Fundamental Cost Types - Cost Definitions

[Costs may be classified according to their source and behavior: Scale of aggregation - Total costs - Unit costs Time period for which the costs are charged - Product costs - Period costs Controllability and relevance for decision-making and control - Controllable costs - Noncontrollable costs - Sunkcosts - Opportunity costs Their basic source - Production costs (also termed manufacturing costs) - Nonproduction costs How the costs change with changes in activity - Fixed costs - Variable costs - Semivariable costs Traceability to individual units of production - Direct costs - Indirect costs Use in planning (budgeting) and subsequent control - Standard costs - Normal costs ]