Most costs are a mixture of variable and fixed costs. Cost behavior determines how much a cost will change in relation to the unit volume of production or selling activity of a business.
Last modified February 25th, 2019
Tag: Cost structure
Cost Classification in Financial Projections
There are two major cost items to take into account when preparing financial projections, manufacturing costs, and non manufacturing costs.
Manufacturing costs are the costs incurred in the manufacture of a product for sale to customers and are included under cost of goods sold and inventory in the financial projections. Non manufacturing costs are costs not related to the product and are included in operating expenses in the income statement of the financial projections.
Last modified January 29th, 2019