Take These Different Areas Into Account

Have Purchasing, Sales and Accounting.  and Define the Following Cost Types : Manufacturing Costs Material Costs Administrative Expenses Distribution Costs Structure of Costs According to Origin an Important Distinction You Need to Make for Your Business is Dividing Costs Into Primary Costs and Secondary Costs . The Primary Costs Arise in Your Company When You Purchase External Services or Provide Your Own Services.

Secondary Costs Arise When Self-produced Goods Are Included in the Production Process. Structure of Costs According to Attribution the Total Costs in Your Company C Level Contact List Can Also Be Divided Based on Attributability . With Regard to Attribution, You Differentiate Between Direct Costs and Overhead Costs . You Can Allocate Your Individual Costs Directly to a Specific Cost Object. This is Not Possible With Overhead Costs.





Here You Allocate the Costs Incurred via a Cost Center. You Apply an Overhead Surcharge in Order to Be Able to Allocate the Costs Proportionately to a Cost Object. What Are the Principles of Cost Type Accounting? If a Company Carries Out Cost Type Accounting, It Must Observe the Following Principles : Clarity Freedom From Overlap Completeness Economics Clarity You Must Clearly Define All Costs That Arise in a Certain Period of Time.