The expenditure on goods and services required to carry out the operations of an organization. Different methods of defining cost are used in accounting to reflect various aspects of financial reporting and decision making.
An item of expenditure incurred in an accounting period but, under the accruals concept, not matched with the income it will generate. Instead of being treated as an operating cost for that period, it is treated as an asset with the intention of treating it as an operating cost to be charged against the income it will generate in a future period.
Energy cost refers to the expenditure on all sources of energy required by an organization, including electricity, gas, solid fuels, oil, and steam. Managing energy costs effectively can significantly impact an organization's bottom line and sustainability goals.
Expenditure refers to the costs or expenses incurred by an organization. These may be capital expenditure or revenue expenditure. It encompasses both the outlay of money and the acknowledgment of liabilities.
A fixed cost (also known as a fixed expense) is an item of expenditure that remains unchanged in total, irrespective of changes in the levels of production or sales. Examples include business rates, rent, and some salaries.
Materials requisition, also known as stores issue note or stores requisition, is a document used in organizations to authorize the transfer of materials from stores for specified uses.
Policy cost refers to the expenditure incurred as a consequence of a policy determined by the management of an organization, such as insurance premiums based on policies like key-man insurance.
Recognition is the procedure used to incorporate an accounting item into the financial statements of an organization. This process is not only essential for capturing revenue and expenditure items but has also become increasingly crucial for the proper treatment of off-balance-sheet finance.
The sum of all expenditure incurred during an accounting period within an organization, on a product, or on a process. Total costs are often analyzed into fixed costs and variable costs.
