Cost Categories are useful for organisations that
require allocation of Revenue and Non-Revenue Items to parallel sets of Cost Centres. Cost categories facilitate third dimensional
reporting of Expenditure and revenue. Some of the examples of Cost Categories
can be Regionwise or geographywise, Gradewise, Departmentwise and so on.
Use of Cost Categories
By using Cost Categories you may allocate, in parallel, a
transaction to more than one set of Cost Centres. The
following example illustrates the use of Cost Categories.
The Cost Centres such as Marketing,
Finance and Manufacturing can now belong to a category - Departments.
The Salesmen A, B and C can be Cost Centres under a Category - Executives.
Similarly, you can create a new Cost Category Projects under which
Cost Centres such as Airport construction, Road
construction and Buildings may be created. The classification appears as following: