What are the two types of expenses

Cost types

1. Due to the "behavior" of different costs when the output volume changes, two groups can be distinguished: the fixed costs, which do not react to a change in the output volume, but remain constant (e.g. building rent), and the variable costs, which change Change proportionally, progressively or degressively with the application rate (e.g. raw material consumption).
2. As a rule, three types of costs are used for the theoretical analysis of economic relationships: the total costs as the sum of all costs incurred in the production of a good (goods), the average costs as the costs per piece of good produced and the marginal costs as the costs for the last unit produced of a good.
3. According to the attributability of the costs to the costing object, a distinction is made between directly attributable individual costs and overhead costs (e.g. managing director's salary), which can only be charged to a costing object by means of cost coding.

Depending on the perspective, one can differentiate between different types of costs (cost types):

A. According to the cost goods

1. Personnel costs: Personnel costs are all those costs that have to be expended for the employees of a company. The costs come in the form of wages, salaries, commissions or tuition? depending on the type of employment. Personnel costs also include statutory expenses and non-performance wages. In recent times, training costs have also been counted as incidental personnel costs.

2. Material costs. These include raw and auxiliary materials that are used in production. A special problem with material costs is the assessment of material consumption.

3. Cost of Capital

4. External service costs

5. Cost to human society

6. Environmental protection costs


B. According to the operational function:

1. Procurement
2. Warehousing
3. Manufacturing
4. Administration
5. Distribution
6. etc. (others are possible)


C. According to the attributability to services or service units

1. Direct costs
2. Overheads
3. Extra costs


D. According to the type of degree of employment

1. variable costs,
2. Fixed costs / fixed costs


A cost type is the epitome of all costs that differ from all other costs of the company in at least one characteristic. Types of costs arise from the consumption of goods and services. Criteria for the cost type breakdown

1. Place of origin of the consumed goods. Then one can distinguish

a) primary cost types: consumption of goods purchased from the procurement market (original production factors),

b) secondary types of costs: consumption of internal services (derivative production factors)

2. Type of goods consumed. According to this criterion, a distinction can be made between, for example: personnel costs, capital costs (imputed depreciation, imputed interest), costs for third-party services and material costs, such as raw materials, consumables and supplies as well as taxes and fees, etc.

3. Operational functions. This results in the following cost type breakdown:

a) Procurement costs (procurement costs)

b) Storage costs (storage costs)

c) Manufacturing costs (manufacturing costs)

d) Administration costs (administration costs)

c) Distribution costs (’distribution costs)

4. Type of offsetting to the insurance provider:

a) Individual costs

b) Overheads

5. Type of cost recording: The following classification is obtained:

a) cost types equivalent to expenditure (basic costs)

b) Imputed cost types (additional costs)

6. Strength of cost responsiveness.

The following classification is obtained:

a) fixed cost types (fixed costs)

b) variable cost types (variable costs)

The classification obtained by the classification criteria shown is recorded in the cost type plan.

The assessed objective-related consumption of individual types of goods is referred to as cost types. Since the types of goods in corporate procurement, production and sales processes can be broken down according to different criteria, there are numerous ways of classifying cost types (cost type accounting). With regard to the choice of classification criteria for the types of costs in a cost accounting, it must always be noted that the scope and depth of the classification of the types of costs must always be based on the principle of economic efficiency, in addition to the tasks of cost accounting. The additional information gained through a stronger structure must be in a reasonable proportion to the administrative costs that it triggers. The basic criterion for classifying the types of costs is the place of origin of the goods on which the costs are based, consumed or to be consumed. Primary cost types denote the (assessed, objective-related) consumed goods in an actual cost calculation or goods to be consumed in a planned cost calculation that the company has not created itself but has or will obtain from the procurement market. In contrast, secondary and secondary cost types represent those (assessed, objective-related) consumed. Goods of an actual cost calculation or goods to be consumed in a plan cost calculation that the company has created or will create itself. The primary types of costs include personnel, third-party services and costs for fees, taxes and environmental protection measures. Material and operating costs also fall under the primary C, unless the material and operating resources were created by the customer. The use of self-made goods, such as B. unfinished products, leads to secondary and secondary cost types. Further classifications of cost types result from the different tasks of cost accounting or cost type accounting.

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