Types of Cost

Cost is an amount that has to be paid or given up in order to get something.

TYPES F COST

1. FIXED COST
A type of cost that remains constant as volume increases or decreases over a period of time.

2. VARIABLE COST
A type of cost that corresponds to the volume and number of consumers of all goods and service.

3. TOTAL COST
Refers to the sum total of all cost.

4. AVERAGE COST
Refers to the measure of the total cost.

5. MARGI NAL COST
Refers to the resource associated with q small incurrent change in producing goods and services.

6. OPPURTUNITY COST
Sacrificing of other output.

7. DIRECT COST
Directly related in the production of goods and services.

8. INDIRECT COST
An expense incurred in joint usage.

9. INTANGIBLE COST
Cost that cannot be touched and is not part of total cost.

10. CAPITAL COST
Cost for items of the life-expectancy of more than a year.

11. RECURRENT COST
Cost necessary incur each year or each month.