- Costs directly liked with manufacturing (materials, labour)
- Integrates customer relation management (CRM), human resources, financials and data.
- Costs that have already been incurred and cannot be changed.
- Day to day cost of business, requires minimal immediate outlay.
- Offering a product or service that is perceived as unique in the market.
- Focussing on offering products and services to a particular market segment or buyer group.
- Cost that vary with production/output. Are constant per unit.
- Income forgone when deciding between two alternatives
- Manages data, reduces physical resources requirment.
- Can be identified with, or traced to, a particular cost object in an economic manner.
- Provides applications for standards, requires less infrastructure
- Offering the same or better quality product at a lower price than the competition is capable of.
- Orders, information, payments, returns
- Profit before net interest and taxation
- Any large permanent purchase by a company, requires immediate outlay.
- Common costs that are assigned to a product/activity
- Reach new customers, offer new products
- Recording transactions in the period they occur, regardless of cash exchange
- Cannot be identified with, or traced to, a particular cost object in an economic manner.
- Systematic allocation of cost to a tangible asset over its useful life