Page 7 - PowerPoint Presentation
P. 7
RECAP
Cost Terms And Concepts
Cost
• The cost of any item, whether production or service driven,
is determined by a quantifiable measurement and a value
measurement.
Cost classification
• Classification is linked to the intended use of the cost
information: i.e. for inventory valuation, planning, decision-
making or control purposes.
Cost behaviour
• Cost behaviour is driven by the different levels of activity
and a variety of measures.
Cost estimation
• Different methods are used for cost estimation, of which
the high-low method is found most often in questions.
7
