Assignment Help On-Cost Categorizations
Costs can be categorized in the following ways: Actual vs. budgeted cost Full cost vs. direct cost Fixed vs. variable vs. mixed costs Relevant vs. irrelevant costs Product vs. period Direct vs. indirect Discuss the following questions:
Provide an example of each of the cost categorizations above.
Why is it important for a company to know the categorization of each cost?
How can this information be used in decision making?