- Direct Versus Overhead Costs (and Listed Costs)
- Direct costs are most likely also variable used directly in the production of a specific crop or livestock.
- Overhead costs are those costs that are hard to assign directly to a particular enterprise. Most fixed costs are overhead costs.
- Cash Versus Non cash Income and Expenses
The cash versus non cash distinction is based on the nature and timing of a transaction. Income was just defined as “a value that is or should be received.” Similarly, an expense or cost was just defined as “a charge that is or should be made.”