Classifications of cost:

cost can be widely classified into 5 types

direct material
1. By element material cost Indirect material
direct labour
Labour cost
Indirect labour
expenses direct expenses
Indirect expenses
2. By nature Direct costs

Indirect costs

3. By controllability Controllable costs

Uncontrollable costs
4.By variability Variable cost
Semi-variable costs
Fixed cost

5. By normality Normal/Unavoidable costs

Abnormal/avoidable costs