common costs

common costs
1) In process costing, those costs incurred by a process before the point at which the joint products or by-products are subjected to separate treatment. The common costs, therefore, must be borne by all the output, i.e. by the main product, the joint products, and the by-products.
See also: joint costs
2) Costs regarded as unchanged as a result of a managerial decision. For example, if an increase in production is being considered, the total rent payable would be described as a cost common to both the situations before and after the production increase as the rent did not change as a result of the decision to increase production.
Compare: relevant costs
3) Costs that are common to a number of processes or products and are therefore shared by them. Common costs are usually fixed costs and require allocation to the appropriate cost objects.

Accounting dictionary. 2014.

Look at other dictionaries:

  • Costs (English law) — Costs is a term of art in civil litigation in English law (the law of England and Wales), and in other Commonwealth jurisdictions. After judgment has been given, the judge has the power to order who will pay the lawyers fees and other… …   Wikipedia

  • Common Informers Act 1951 — United Kingdom Parliament Long title An Act to abolish the common informer procedure. Statute book chapter 14 15 Geo. 6, c. 39 …   Wikipedia

  • Common Myna — In Kolkata, West Bengal, India. Conservation status …   Wikipedia

  • Common Ground (NYC) — Common Ground Founder(s) Rosanne Haggerty Type social services organization Founded 1990 …   Wikipedia

  • Common Murre — Uria aalge aalge in breeding plumage at Runde (Norway). Note bridled bird in centre. Conservation status …   Wikipedia

  • Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor — Common Sense on Mutual Funds   Author(s) John Bogle …   Wikipedia

  • costs de incremento — Costs awarded by the court and added to the damages assessed by the jury. At first, by the common law, no costs were awarded to either party eo nomine. If the plaintiff failed to recover he was amerced pro falso clamore. If he recovered judgment …   Ballentine's law dictionary

  • Common Tunnel — Grønland Station Overview Type Rapid transit …   Wikipedia

  • Common-interest development — Common Interest Developments (abrev. CID) is the fastest growing form of housing in the world today.[1][2] They are commonly known and seen as condominiums, timeshares, planned unit developments along with other titles and descriptions. The… …   Wikipedia

  • Common Agricultural Policy — (CAP) in the law of the European Union, one of the very foundations, being the legal regime supporting the coordination of agriculture in Europe. Although included in the common market, it was necessary to make special provision for agriculture… …   Law dictionary