The costs and their different classification

A) Income

—> Value of sale and goods

—> And/Or the value of production that can still be sold

B) Cost

—> Quantity of goods and services during production

C) Margin [Gewinnspanne]

—> Difference between the sale or production price and a certain cost

D) Result

—> Difference between all income and all costs incurred

A) Margin

—> Difference between turnover [Umsatz] and variable costs

B) Margin of Contribution [Deckungsbeitrag] (same as margin)

—> Difference between selling price and variable costs

C) Gross Margin [Bruttogewinnspanne]

—> Difference between turnover and the industrial costs of production

D) Liquid Margin

—> Difference between all incomes and all costs incurred (same as result)

Direct Costs:

Costs that can be immediately affected, without intermediate calculations, to a particular segment or to the products or services considered

Indirect Costs:

Because they relate to several [mehrere] products or services or to various segments of the company, their costs need to be split in order to be able to be charged on only one specific product.

Added Economic Value:

—> compares the additional value generated by a capital invested in the company, with the income that would produce in a financial application in the capital market

—> for example the return [Rendite] of the company is 12 % per year

—> the return of the capital market (for example of shares) is 8 % per year

—> The investment in the company would be more profitable

Levels of costs:

Figurative expanses = Cost of opportunity + Risk premium

—> minimum requirements for an investment to be economically viable

—> Only when these costs are covered is there a positive EVA (economical value added), which means that the company has generated additional value for the investors

A) By Nature:

—> Costs viewed according to their specific origin

B) For Functions:

—> Costs required to carry out a particular production or to ensure the operation of a department or segment of activity

C) For Products:

—> Sum of costs necessary to manufacture one or more products or provide one or more services.

A) Real Costs:

—> Calculated costs after the occurrence [Eintreten] of the situation

B) Budgeted Costs:

—> Calculated costs before the occurrence of the situation

C) Deviation [Abweichung]

—> Difference between Real Costs and Budgeted Costs

—> Costs of direct labor used in production and general manufacturing costs related to production

—> for example the costs of processing raw materials into finished products

—> the costs of raw material are not included in transformation costs

Industrial Costs = Cost of raw material + Transformation costs