Classification Cost Accounting
Classification Cost Accounting involves the systematic organization and categorization of various costs incurred by a business or organization. This process helps in allocating costs to different cost centers, products, or services accurately. It also aids in analyzing the cost structure of the business and making informed decisions regarding pricing, budgeting, and resource allocation. The classification of costs typically includes direct costs, indirect costs, fixed costs, variable costs, and overhead costs, among others. Proper classification of costs is essential for effective cost management and financial reporting.
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