SAB6#72_Cost_Types

SAB6#72_Cost_Types

1. Variable costs

   • These costs change with the amount of production or the amount of work
     • Examples, include the cost of material, supplies anda wages

2. Fixed Costs

   • These costs do not change as production changes
     • Examples include the cost of set-up,ret,utilities. etc.

3. Direct Costs

   • These costs are directly attributable to the work on the project
     • Examples are team travel, team wages, recognition, and costs of material used on the project

4. Indirect Cost

   • Indirect costs are overhead items or costs incurred for the benefit of more than one project
     • Examples include taxes,fringe benefits, and janotorial services