Historical

cost :
The cost which are determined after

they are incurred are called historical cost.

1.They 2.They 3.They

are based on recorded facts. can be verified, as they are based on evidence. are objective, because they are based on facts.

Predetermined cost :
The cost which are estimated and fixed

before the production starts are called predetermined cost. Generally they are based on past experience. If they are fixed scientifically, they are known

as standard cost.

Product cost :
They are those cost which are

identified with the product and included in inventory

values. Production costs, Cost or manufacturing or factory cost are product costs.

Period cost :
These are the cost incurred on the

basis of time and are not identified with product or job. They are deducted as expense of the period during which they are incurred.

Generally it is believed that expenses

upon production costs are considered as product cost and administrative and selling expenses are treated as period cost.

Marginal cost Relevant cost

Differential cost
Sunk cost Opportunity cost