A cost included in a budget representing the expected expenses to be incurred by a budget center, cost center, cost unit, product, process, or job.
A cost center is a non-revenue-producing segment of an organization where costs are separately figured and allocated, and for which someone has formal responsibility. Common examples include departments like Human Resources (HR) and IT services.
Product costs that can be directly traced to a product or cost unit. They encompass direct materials, direct labor, and direct expenses that are attributable to the product without the need for cost apportionment.
