What Is a Cost Element?

It is a classification based on the economic use of expenses or the economic nature of expenses. It is used to analyze the amount of various production expenses in each period.

Cost element

cost element;

cost elements;

element of cost;

cost factor;

elements of cost

1. The Japanese Dictionary of Accounting

In the SAP system, cost elements are used to record different types of expenses and are divided into the following two categories:

One. Elementary cost elements, which are essentially profit and loss subjects in financial accounting.

two. Secondary cost elements, which can be used to describe the cost nature of cost flow between cost objects within management accounting.

Cost management related diagram

Cost management architecture diagram

Cost Control Organization Chart

Cost management flowchart