GFEBS L230E Cost Management Process Overview

1. Direct Cost: A cost such as labor, materials, or supplies that can be traced directly to producing a specific output of an organization, product, and service 2. Indirect Cost: A cost that cannot be traced directly to a specific organization, product, and/or service output They often are allocated on a predetermined basis and generally are synonymous with overhead costs such as general and administrative expenses. 3. Funded Cost: The value of goods or services received because of an obligation of funds by the organization performing the work 4. Unfunded Cost: A cost that is financed by another organization's or activity's appropriations. 5. Variable cost: A cost that changes with a change in output 6. fixed cost: A cost that remains the same regardless of a change in output 7. sunk cost: A cost incurred in the past that will not be affected by any present or future decision 8. incremental cost: The increase or decrease in cost that would result from a decision to increase or decrease output levels 9. avoidable cost: A cost incurred on an object that will no longer be incurred due to a decision to change the output. 10. unavoidable cost: A cost incurred on an object that will be incurred regardless