It represents one of the central parts of analysis of analytical data produced by general accounting movements and any budgets loaded.
In this context we have 4 different types of analysis available (Print Type):
- Movement List
- Horizontal Movements
- Vertical Movements
- Movements for the Center
All other parameters are search criteria that condition the query for extracting the data to be represented in the type of print.
Among these we find: Cost/Revenue Item, Cost Center, Account Type, Cost Type, Cost Specifications, From date … to date, Analytic Causal and Sorting.
Some general clarifications on the classification of analytical costs should be made.
Cost classification is an important concept in budgeting, accounting and project management. While creating a project budget, categorizing expenses provides understanding of components that form the budget.
Direct cost and indirect cost are two different concepts used for budget planning and accounting operations. There are some differences between them. It is not easy to make a certain distinction between direct cost and indirect cost all the time. Because direct and indirect cost are based on the nature of product and business.
Simply put, direct costs are attributable to a product or a goods or service itself. Direct costs are directly related with the product. On the other hand, indirect costs are those required to produce the product however, they are not directly related with the product.
Indirect costs are those which effect the whole company such as depreciation, accounting services, general supplies and board salaries. They are not just for only one product. Overhead costs, ongoing costs, project management costs, operational costs are indirect costs.
The cost classification process is very important in project cost management. It enables to develop an effective cost control and profit planning system. If you don’t know which cost is direct or which is indirect, you cannot perform cost control effectively. Also, it is helpful for decision making.
It is significant to have a clear understanding of cost classification. During the procurement of a goods or a service, you can compare their direct and indirect costs to your project separately.