ECONOMICS

Detailed explanation-1: -Costs are broadly classified into four types: fixed cost, variable cost, direct cost, and indirect cost.

Detailed explanation-2: -Some variables that can affect how a business refers to cost structure are cost objects, like products, services, customers, projects and business activities. Additionally, cost structure might vary even within one business depending on product lines, business units or divisions.

Detailed explanation-3: -Production costs can include a variety of expenses, such as labor, raw materials, consumable manufacturing supplies, and general overhead. Total product costs can be determined by adding together the total direct materials and labor costs as well as the total manufacturing overhead costs.