Primary costs
Primary costs (also primary or simple costs ) is a term used in business cost accounting . These are costs for production factors that a company does not manufacture itself but obtains from procurement markets.
Primary costs are original costs as they are posted in financial accounting and transferred from there to cost accounting. They can be clearly determined according to their amount.
Examples of primary cost types are:
- Labor costs (wages & salaries; social costs )
- Material costs (raw material costs; auxiliary material costs; operating material costs)
- Operating costs (vehicle fleet operating costs; other operating costs)
- Cost of capital
- External service costs
- Risk costs
Primary costs therefore always arise when something from external cost accounting occurs on a cost object ( cost center , internal order , process, etc.) or cost unit . Primary costs therefore always originate from transactions that are posted in financial accounting . This can be
- an invoice is posted with additional account assignment e.g. B. on cost center (primary costs on cost center)
- In the course of production, semi-finished products are obtained from stock for a production order. In financial accounting, a goods issue is posted with an additional account assignment to the production order. (Primary costs on the cost unit).
- The depreciation of the production facilities is imputedly depreciated and charged to the production cost centers.
Primary costs ultimately reflect the total cost incurred. The cost incurred is classified into cost types , which in turn z. B. can be grouped according to personnel costs and material costs.
In contrast to the primary costs, there are the secondary costs , which arise from internal cost allocation or allocations , i.e. H. the further charging in the cost accounting.
See also
- Secondary costs
- Operating accounting sheet (BAB)
- Cost type accounting
- Cost center accounting
- Cost unit accounting
