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Cost classification can be done in

This question belongs to Commerce Costing
Costing
?

Cost classification can be done in ________.

Answer & Solution
Correct Answer: Option D
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.
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2 Comments
Okoye Ruth
Okoye Ruth 3 years ago
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?
Divya Kabra
Divya Kabra 9 years ago
Basically there are 6 ways i.e
On the basis of:
1. element
2. method
3. variability
4.control
5.function
6. time
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