Cost classification can be done in several ways. Cost classification in economics might involve categories of fixed, variable, opportunity, production and sunk costs. On the other hand, accounting costs can be classified as either direct or indirect for a business.
The cost which is to be incurred even when a business unit is closed is a _____.
Direct expenses are also called chargeable expenses. Chargeable expenses are any costs that your agency or client has agreed to reimburse to you. These will usually be invoiced through the umbrella company and may well require an expense form, signed by the client, to support the claim.
Indirect material used in production is classified as ________.
Warehouse rent is a part of distribution cost. Distribution costs (also known as “Distribution Expenses”) are usually defined as the costs incurred to deliver the product from the production unit to the end user. It is a broad terminology and it includes several costs.
Indirect material scrap is adjusted along with ________.