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Cost 40000 0 Performance, Attribute, Metric, Cost, Expense, COGS, Distribution Cost The cost associated with generating revenue or performing a process; the costs of performing the work
CO
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Compare also to other performance [[Attribute]]s: [[m:AD]], [[m:AE]], [[m:DP]], [[m:RS]], [[m:SD]]. | Compare also to other performance [[Attribute]]s: [[m:AD]], [[m:AE]], [[m:DP]], [[m:RS]], [[m:SD]]. | ||
Latest revision as of 22:57, 7 February 2023
The cost associated with generating revenue or performing a process; the costs of performing the work. Cost has four dimensions:
- Fixed Costs = Costs that remain the same despite volume of activities performed, or products or services produced or sold. Fixed costs typically require more time, effort and/or risk to add or remove, and behave like stair-step costs
- Variable Costs = Costs that vary proportionally with volume of activities performed, or products or services produced or sold. Variable costs behave linearily
- Economies of Scale = Cost advantages from increase of overall volumes
- Economies of Scope = Cost advantages from increase of scope of operations; Consider shared services
The following metrics have been identified as strategic and diagnostic metrics for Cost:
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Compare also to other performance Attributes: Adaptability, Asset Efficiency, Dependability, Responsiveness, Sustainability.
Notes
Aggregation of costs may result in Mixed Costs = Costs that behave partially like fixed costs and partially like variable costs.
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