The process of grouping of costs according to some common characteristics ________.
A. absorption
B. primary distribution
C. secondary distribution
D. classification
Answer: Option D
Solution(By Examveda Team)
The process of grouping of costs according to some common characteristics classification. Cost may be classified according to their nature, i.e., material, labour and expenses and a number of other characteristics.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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