Working with Costs and Budgets, 5th Edition

Session AClassifying costs

1 Introduction

At home, if your expenses or costs are high in comparison to your income, your life can be difficult. Say, for example, that the electricity, gas and telephone bills are all due at the same time and your wages are only enough to pay two of them. What do you do?

Let's assume you negotiate time to pay but realize that the same problem is likely to occur next quarter. You'll have to decide whether to turn down the heating, switch off the lights or cut back on phone calls.

Businesses can find themselves in similar situations. It is up to you and everyone in your organization to be concerned about the costs ...