OpenDevelopment

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:

</td><td class="l3"></td>

</table> 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.

Community Importance Rating:

0.00

(0 votes)

Hierarchy

Strategic	Diagnostic)
ID Name CO1 Supply Chain Costs	ID Name CO11 Cost of Goods Sold	ID Name CO111 Direct Material Costs CO112 Direct Labor Costs
	ID Name CO12 Distribution Costs	ID Name CO121 Order Management Cost CO122 Storage Costs CO123 Handling Costs CO124 Transportation Costs CO125 Export/Import Duties
	ID Name CO13 Other Operational Expenses
ID Name CO2 Customer Acquisition Costs	ID Name CO21 Cost per Acquisition

ID	Name	Level	x
CO	Cost	0	CO
CO1	Supply Chain Costs	1	CO1
CO2	Customer Acquisition Costs	1	CO2