Types of expenses

Direct costs are those costs that cann be attributed directly to a product or a range of products or a source of business, or unit number or the operation of the undertaking. An example of a direct cost would be the cost of a new automobile tires.

Indirect costs are very different and cannot be attached to a product specific, unit or activity. The cost of labor benefits for an automobile manufacturer or work is certainly a cost, but it can be attached to a vehicle. Each company must devise a method of allocation of indirect costs of different products, sources of revenue, business units etc.Most of the methods of distribution are less perfect and usually eventually be arbitrary to a degree or autre.Des frameworks business and accounts should always keep an eye on the allocation methods for indirect costs and make the numbers cost generated by these methods with a grain of salt.

Fixed costs are costs that remain the same on a relatively wide range of volume of sales or production output.They are like an albatross around neck of the company and a company should sell his product at high enough profit profitability at least.

Variable costs can increase and decrease in proportion to changes in the level of production or of variable vente.Frais vary proportionally with changes in production.

Relevant costs are costs that may be incurred depending on this strategic course takes a company.If a car manufacturer decides to increase production, but tires cost rises, costs must be taken into account.

Costs irrelevant are those that should ignore decide on a future line of conduite.Ils are fresh at risk of getting a bad décision.alors related fees are future spending, irrelevant costs are the costs incurred in the past .the ' money in the past.