Cost classification can be done in ________.
A. two ways
B. three ways
C. four ways
D. several ways
Answer: Option D
Solution(By Examveda Team)
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.Join The Discussion
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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
A project requires an initial outlay of N2.8m. with a life span of 5 years. Depreciation is at the rate of 20%. The cash profit from the project is expected to be N900,000, N970,000, N950,000, N830,000 and N790,000 for years 1 to 5 respectively. The company's cost of capital is 18%. What is the payback period of the project?
Basically there are 6 ways i.e
On the basis of:
1. element
2. method
3. variability
4.control
5.function
6. time