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19/2/24, 14:39 Types of Costs - Crossword Labs

Types of Costs

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2. They do not vary with the number of goods or 1. Refer to the benefits of an alternative given up
services a company produces over the short term. when one decision is made over another.
7. Fluctuate as the level of production output 3. They are expenses unrelated to producing a
changes, contrary to a fixed cost. This type of good or service.
cost varies depending on the number of products
4. They are expenses associated with day-to-day
a company produces.
business activities but are not traced back to one
8. Are expenses managers have control over and product.
have the power to increase or decrease.
5. Are historical costs that have already been
incurred and will not make any difference in the
current decisions by management.
6. They are related to producing a good or
service. It includes raw materials, labor, and
expense or distribution costs associated with
producing a product.

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