costeo

Costeo, or costing, is the systematic process of determining and assigning the costs associated with producing a product or delivering a service. It involves identifying cost objects (products, projects, activities) and tracing direct costs while allocating indirect costs (overheads) using cost drivers and allocation bases. Costeo supports decision making, planning, and financial reporting by providing insight into how resources are consumed.

Common costeo methods include absorption costing (costeo por absorción), which assigns all manufacturing costs to units; variable costing (costeo variable), which includes only variable manufacturing costs in product cost; standard costing, which uses predetermined standard costs for planning and variance analysis; and activity-based costing (ABC), which assigns overhead based on activities that drive costs. Costeo also distinguishes between job-order costing for customized work and process costing for homogeneous production. Additional approaches such as target costing refine product design and pricing to meet cost targets.

Costeo is applied in pricing decisions, budgeting, profitability analysis, and inventory valuation. It supports management reporting, cost control, and strategic planning by highlighting cost behavior, cost drivers, and potential savings. Limitations include dependence on estimates and allocation assumptions, which can distort product cost if not reviewed regularly. In practice, costeo complements financial accounting by providing actionable cost information for internal decisions, while external financial reporting remains governed by applicable accounting standards.