Costs can be classified in different ways, depending on which data is needed:
1. Direct costs and indirect costs. Direct costs are costs which are directly related to making a product, considering indirect costs this firsthand function cannot be specifically traced to a cost object.
2. Manufacturing costs. In manufacturing costs are categorize as direct costs i.e direct labour
3. Cost behaviour. According to how costs change in response to a change in a cost driver costs are differentiated as variable, fixed and mixed.
4. Relevant and irrelevant costs. For managerial decisions it is essential that only relevant costs are considered. In managerial accounting irrelevant costs are those what are the same ones for different alternatives and also sunk costs i.e. costs what are past costs and cannot be changed.
Companies that employ a cost leadership strategy i.e. they turn their attention to cost accounting and cost allocation and gain competitive advantage because their goods are are at a lower cost than competitors products.
II. The organization of the European System of Central banks (ESCB) is composed of the European Central Bank (ECB) and the national central banks (NCBs) of the European Union member states. In accordance with the ESCB Statute, the primary objective of the ESCB is to maintain stability of the financial system. To ensure the safety of the banking system, reserve requirements are obligatory for commercial banks, obliging to deposit by internnational requirements 8% of all deposits
Central banks of different countries can valiadate .... Which fix the deposit and liquid assets what are needed to satisfiy the need for cash.If commercial banks have problems with liquity indipendendant central banks could be .... Lenders to commercial banks.