Internal (secondary) costs

Last updated: 02.04.2017

Internal (secondary) costs arise from inside of the entity and they may consist of a number of previously incurred external costs and intercompany turnover.

 

TOTAL COSTS ARE THUS USUALLY NOT THE SUM OF EXTERNAL AND INTERNAL COSTS (external costs would then be included multiple times and internal costs may contain an internal margin).

 

The opposite of internal costs are costs external (primary).

 

More about other possible cost divisions here.



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