Financial Education - Cost of products sold and ongoing production costs

in hive-175254 •  11 days ago 

I will continue with some points about the types of costs, for example historical costs, which are those incurred in a certain period, for example: costs of products sold, cost of production in process.

Source ( msci )

We also have the predetermined costs, which are those that are established before the physical fact of production and can be: estimated or standard.

Then there are the variable costs, which are those that change or fluctuate in direct relation to a given activity or volume.

You will also have heard of fixed costs, i.e. those that remain constant within a given period, regardless of whether the volume of production changes. Examples of these are: straight-line depreciation, plant lease, production manager's salary.

Source ( agiled )

And one of the best known are the product costs, since they are directly and indirectly identified with the product. They include: direct material, labor, manufacturing charge. These have the particularity of being kept in inventories until they are sold, a situation in which they face the revenues to give rise to profits.

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