Classification of cost is useful ________.
A. to find gross profit
B. to find net profit
C. to identify costs
D. to identify efficiency
Answer: Option C
Solution(By Examveda Team)
Classification of cost is useful to identify costs. All the costs of a business can be classified into production costs, administration costs, finance costs, selling costs, distribution costs, research and development costs.Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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