Costs and budget

Costs and budget

1. The "cost" of something may be defind as the group of resources given to get the product or service anyone wants

   • In other words, the costs gets back to the owner even in a different way than it was given and it can be included on the General Balance of a bussiness
   • Types of costs
     • Displacement or replacement cost
     • Incurrent cost
     • Investment cost
     • Total costs
     • Manufacturing costs
     • Financial cost
     • Administrative cost

2. The "budget" is a group of posible incomes, costs, spents and utilities during a determitated period of time.

   • Budget's function
     • Coordination
     • Control
     • Organisation
     • Planning
     • Direction

3. Importance of costs and budgeting

   • Controlling the operative costs and production expenses
   • Follow and comply with the strategic planning of the current year
   • Alternatives to get to do any activity required
   • Analyze average cost changes and early execution alerts

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