Types of Costs

Submitted by interservicio on Mon, 03/24/2014 - 08:55

Regarding the types of costs, which is the order of preferency if two of them apply?.

For example:

In a car factory the costs of the Tires, would be DIRECT costs and VARIABLE (depends on the number of cars produced).

I know that a factory is "operations" and not a properly "project", it's just an example.

 

Which order apply between types of costs?

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admin

Mon, 03/24/2014 - 09:27

The order would depend on the context. Where you want to use the data. 

Cost of Tires may not be variable if you are making only one type of car with one type of tyres. You can pre-order the tires. But it will be direct cost to the project team. So it all depends on the context of question.