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Cost Behaviour

In: Making Cost Control Work

Author

Listed:
  • Trevor J. Bentley

Abstract

We talk about costs as if they had a will of their own. We refer to cost behaviour and we give costs characters and personalities. Mr Fixed Cost is stable and predictable, Mr Variable Cost is unstable and unpredictable, always up and down. Direct Cost knows just where he is going and Indirect Cost is much less sure, and as for Mr Standard Cost, well he is of course perfection, against which all the other costs are measured. Costs are simply another name for the value of the resources we consume. Costs are analysed in order to provide information which will assist the measurement and control of expenditure.

Suggested Citation

  • Trevor J. Bentley, 1978. "Cost Behaviour," Palgrave Macmillan Books, in: Making Cost Control Work, chapter 3, pages 16-24, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-03191-7_3
    DOI: 10.1007/978-1-349-03191-7_3
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