COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
two ways
|
|
|
three ways
|
|
|
several ways
|
|
|
none of the above
|
Detailed explanation-1: -Costs can be classified in different ways: Product costs or period costs. Direct or indirect costs. Variable or fixed costs.
Detailed explanation-2: -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.
Detailed explanation-3: -The four classifications of cost are: Cost of Revenue. Research and Development. Selling and Marketing.
Detailed explanation-4: -Fixed and Variable Costs Expenses are separated into variable cost and fixed cost classifications, and then variable costs are subtracted from revenues to arrive at a company’s contribution margin.
Detailed explanation-5: -Answer: The most common costing methods are process costing, job costing, direct costing, and Throughput costing. Each of these approaches can be used in various production and decision-making situations.