El costo de un producto se puede dividir en 3 grandes categorías: el costo de materia prima, que es lo que importa para cuantificar la producción; el costo de mano de obra; y los gastos generales (gastos administrativos del equipo) y otros gastos. El presupuesto sería cómo se dividiría entre estas 3 categorías. En inglés, costing "refers to the process of costing out products for production" while budgeting refers to how money is allocated among different categories or departments in a business. Costing is the management of all costs needed to produce a product or service. It includes both direct and indirect costs. Direct costs are those incurred in the production process, such as labor, raw material, tools, and supplies; indirect costs are those not incurred in the production process that affect the cost of production (for example, heating utilities). Costing is one of many ways to create a budget for your business. A budget helps businesses stay on track with their financial goals and objectives by putting it out in black and white what expenditures they need to make during each month. This helps businesses stay within their means so they can continue their successful operations. The only difference is that budgeting/allocation is how much money will be allocated to each department or category where costing is how much it will cost you to produce your product. Costing is the process of allocating all costs incurred in preparing for, arranging, delivering and following up on an event (Babbie & Berman, 2011). These events include weddings, parties, meetings, etc. An important part of costing events is that they occur at a specific location and time. This means that any previous funds already used by the company must be accounted for when producing the budget for the event. This includes costs to prepare for and/or attend the event. The purpose of allocating money and resources for an event is to ensure optimum use of the resources while at the same time accounting for the lost value incurred from not using the assets in question. An example of this is a conference that has been booked in a certain hotel. This hotel has been booked because it is the only place that has a conference room that can be rented out on short notice, meaning that an organization booking a room months in advance would have trouble finding somewhere large enough to host it later. The conference planners must pay for this room already booked before they make their final booking decision, thus creating a lost cost from not using this asset. Depending on the type of event, the budgeting may differ from the actual expenses incurred. For example, if an event is held at a hotel, some of the money used to pay for it will go to paying for food and drinks consumed by the attendees, but not all of it. This is because people at gatherings are often more hospitable than they are at work. They tend to buy drinks for their colleagues and associates. Similarly, even though some of the time that they are at this meeting is spent working or attending to business affairs, part of this time is additionally spent socializing with other attendees which counts toward future events arranged by this organization.
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