Grouping of cost elements

What is meant by Grouping of cost elements?

The "grouping of cost types" refers to the systematic consolidation and categorization of various cost types in a company according to specific criteria. This grouping enables a structured presentation and analysis of costs, which is of great importance for cost accounting and controlling.

Typical software functions in the area of "grouping of cost types":

1. Hierarchical Structuring: Creation of a multi-level cost type hierarchy with main and subcategories.
2. Flexible Grouping Criteria: Definition of various grouping levels according to business aspects such as production factors or functional areas.
3. Automatic Summation: Calculation of sums and subtotals for cost type groups.
4. Drill-Down Functionality: Ability to navigate from aggregated data to detailed levels.
5. Report Generation: Creation of reports at various aggregation levels of the cost type structure.
6. Comparative Analyses: Conducting plan-actual comparisons and trend analyses at the group level.

Examples of "grouping of cost types":

1. By Production Factors: Material costs, personnel costs, capital costs, operating equipment costs.
2. By Business Functions: Procurement costs, production costs, administrative costs, sales costs.
3. By Allocation: Direct costs and overhead costs.
4. By Cost Recording: Expense-equivalent costs and imputed costs.
5. By Behavior with Capacity Changes: Fixed costs and variable costs.
6. By Origin of Cost Goods: Primary costs and secondary costs.