Amortisation, Costs – Direct, indirect, flexible, variable, proportional, none-proportional costs

Amortisation, Costs – Direct, indirect, flexible, variable, proportional, none-proportional costs 

Costs, expenses, amortisation

Costs vs. expenses

Definition of costs

Costs is a consumption of non-monetary funds. These non-monetary funds are used for business activity.

Definition of expenses

Expenses is a consumption of monetary funds. These monetary funds are used for business activity. 

Division of costs in account classification

1. Costs for current activity

Costs for current activity is a total amount of costs for economic and financial activity. 

1. Costs for economic activity

Costs for economic activity is a total amount of costs which are used for basic subject of business activity.

1. Costs for financial activity

Costs for financial activity is a total amount of costs which are used for financial existence of company.

Other division of costs

• Technological costs

Technological costs are costs which are used for technology.

• Costs for operation and managing

Types of costs

1. Primary costs

Primary costs are costs of whole company.

1. Secondary costs

Secondary costs are costs of other company´s parts. 

Direct vs. indirect costs

Direct costs are costs which are part of manufacturing. Indirect costs are costs which are not part of manufacturing.

Variable vs. flexible costs

Variable costs is an economical situation when changed amount of production causes a changed price.

Flexible costs:

Flexible costs is an economical situation when changed amount of production does not cause a changed price.

Free flexible costs

These costs should be decreased, these costs worse an economical results of company.

Division of variable costs

Proportional costs

Proportional costs is an economical situation when costs and production change with continual proportional.

None-proportional costs

None-proportional costs is an economical situation when costs and production do not change with continual proportional.

Division of none-proportional costs

1. Progressive costs

Progressive costs is an economical situation when costs increase faster than production.

1. Regressive costs

Regressive costs is an economical situation when costs with production does not change with continual proportional.

1. Depressive costs

Depressive costs is an economical situation when costs increase slower than production.

Explicit vs. implicit costs

Explicit costs are costs which arises from using of external financial sources.

Implicit costs are costs which arises from using of internal financial sources.

Specific category of costs are marginal costs. These costs are decided element for placement of unit of production

Division of costs from time perspective

Costs of current period

Costs of current period are comprised in accounting class number 5.

Costs of future period

Costs of future period are comprised in accounting group number 38.

Characteristics of costs to users

Basic activity

Basic activity is an activity which is written for basic subject of business activity. This basic activity is the first term of business registry.

Additional activity

Additional activity is an activity which is written for additional subject of business activity. This additional activity is under the first term of business registry.

Advisory activity

Correct activity

Characteristics of costs to users

Costs which are presented in financial accounting

These users of costs are shareholders, owners and employees.

Costs which are presented in-company accounting

 Two rates in-company accounting are

Sensibleness

Sensibleness means adequate using of sources.

Docility

Prediction of using of economical source is his appreciation.

Calculating

Calculating is an activity which determines costs for a base value of production.

Calculation

Calculation is an result of determining of costs for a base value of production

Calculation can be current and final.

Current calculation

Current calculation is a calculation which is done before accomplishment of activity.

Final calculation

Final calculation is a calculation which is done after accomplishment of activity.

Calculate method

Calculate method is a way of addition for carrier of activity.