Classifications of cost

Costs may be classified as manufacturing costs and non-manufacturing costs. This classification is usually used by manufacturing companies. Manufacturing ……

As the level of business activities changes, some costs change while others do not. The response of a cost to a change in business activity is known as ……

Costs may be classified as direct costs or indirect costs. The purpose of this classification is to assign costs to cost objects. Cost object means any ……

Costs may be classified as differential cost, opportunity cost and sunk cost. This classification is made for decision making purposes. Explanation and ……

Costs of quality or quality costs does not mean the use of  expensive or very highly quality materials to manufacture a product. The term refers to the ……

In addition to direct labor costs, there are other costs associated with direct labor workers. These are idle time, overtime premium and fringe benefits ……

Explanation and use of high-low point method of splitting mixed or semi-variable cost into its variable and fixed components.

Costs may be classified as product costs and period costs. This classification is usually used for financial accounting purposes. A brief explanation of ……