Finance Management

The operating cost is referred to as the ongoing expenditures incurred with the daily business work.

The economic cost is considered both the amount of money expensed and the potential loss of expending on something else.

Accounting cost refers to the cost of an activity recorded in the financials of the company.

Sunk cost (also understood as retrospective cost) in which an amount already incurred and can not be recovered. Sunk costs are independent of any event and should not be deemed when making investment or project decisions.

Incremental cost is the cost incurred due to an additional unit of a product being produced.

Opportunity cost is the value of the next-best alternative when a decision is made to proceed with one alternative.

An outlay cost is an amount that a company expends on a particular project.

Indirect costs are the costs that can not be readily determined with a specific activity but are incurred for the joint benefit of company/project activities.

Direct cost is a type of cost associated with the production of specific goods or services. The cost of any material which directly used to produce a product/service can be considered a direct cost.

Variable costs are expenses that the amount depending on the volume of goods or services produces. In simple terms, variable cost is changing based on the production/service output quantity/volume.