Pocket costs: Expenses involving cash outflows sooner or later.
Opportunity costs: Costs that do not involve cash outflows; they originate from the renunciation of alternative decisions.
Avoidable and Unavoidable Costs
Avoidable costs: Expenses that are eliminated if a decision is made to remove a cost center or product.
Unavoidable costs: Expenses that persist even if the cost center or product is removed.
Differential and Incremental Costs
Cost differentials: Increases or decreases in total costs motivated by changes in entity operations.
Incremental costs: Cost increases created by a specific decision.
Decremental costs: Cost reductions caused by a specific decision.
Sunk and Separable Costs
Sunk costs: Costs that cannot be changed by any decision.
Separable costs: Costs that can be identified with each specific product.
Independent costs: Costs incurred to make products fit for sale from the point of separation.
Common and Joint Costs
Common costs: Costs generated in manifold production that could theoretically be performed separately.
Joint costs: Common costs incurred in joint production that cannot be separated.
Quality and Lifecycle Costs
Total cost of quality: The sum of prevention, inspection, supervision, and auditing costs. This includes internal costs (reinspections, defect investigations) and external costs (guarantees and post-sale support).
Overall product lifecycle cost: The sum of costs for research, development, innovation, industrialization, production, operation, maintenance (preventive and corrective), and final destruction.
Accounting and Environmental Costs
Accounting policy costs: Costs designed as a comprehensive whole, allocated to different segments and cost objects based on specific criteria.
Inventoried (intrinsic) costs: Costs inherent to the output.
Non-inventory (period) costs: Costs not associated with normal output.
Green (environmental) costs: Costs derived from environmental benefits.
Black (pollutant) costs: Costs resulting from environmental damage.
Neutral costs: Costs that do not affect the environment.
