ENGLISH


Costs may be classified or allocated as in the following schema:

 VARIABLE FIXED
 COSTS COSTS


DIRECT
COSTS


INDIRECT
COSTS


I

I __


e.g. fertilizer,
casual labour
for a potato crop


e. g. fuel for a
general purpose
tractor


 I
e.g. depreciation I
on a potato I
harvester I


e.g. depreciation I
on general farm I
machinery
 -I


In French usage, a distinction is made between general farm
analysis (costs = 'charges') and enterprise or activity
analysis (costs = cutsts'.


050 COST ANALYSIS


F: ANALYSE DES COUTS
S: ANALYSIS DE COSTS


The allocation of costs to FIXED and VARIABLE COSTS, or to DIRECT
and INDIRECT COSTS, or to combinations of these two categories
(COSTS other than direct variable costs, i.e. indirect
variabledirect fixed and indirect fixed costs, are referred to as
structural costs in French usage), or to household and farm costs,
or to ENTERPRISES or ACTIVITIES, or to other categories of costs.


051 COST OF CAPITAL


F: COUT DU CAPITAL
S: COSTO DE CAPITAL


In terms of OPPORTUNITY COST, is the benefit given up through
having INVESTMENT CAPITAL tied up in an ACTIVITY or group of
activities for a period of time. Is often specified as the
interest rate paid for borrowed funds, or the actual amount of
interest paid.


052 COST OF PRODUCTION


 F: COUT
S: COST DE PRODUCTION


The determination from accounting data of the cost of production
of a unit of OUTPUT.


PAGE 11


cost
cost


____~


i I I I