Engineering economics cost types

Fixed

costs are those which are unaffected by changes in activity level over a feasible range of operations for the capacity available.

Variable

in total, change in relation to the quantity of output or other measures of activity level.

Recurring

are those that are repetitive and occur when goods or services are produced on a continuing basis.

Nonrecurring

costs are not repetitive even though the total expenditure may be cumulative over a relatively short period of time.

Direct

costs can be reasonably measured and allocated to a specific output or work activity.

Indirect Cost

cost that supports production but cannot be directly traced to a specific product or activity.

Sunk

costs are those that have occurred in the past and have no relevance to estimates of future costs and revenues.

Opportunity

cost are incurred because of the use of limited resources such that the ability to use those resources to monetary advantage in another way is foregone.