Costs can be categorized in various ways, including the following: Fixed versus variable costs Relevant versus irrelevant costs Direct...

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Finance

Costs can be categorized in various ways, including thefollowing:
Fixed versus variable costs
Relevant versus irrelevant costs
Direct versus indirect
Discuss the following in your main Discussion Board post:
Why is it important for a company to know the categorization ofeach cost?
Provide an example of each of the cost categorizationsabove.
Why is it important to compare actual cost and budgetedcost?

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Fixed cost Variable cost Direct Cost and Indirect cost Relevant and Irrelevant cost with example 1 Variability Fixed Cost Cost which remains constant in total Variable Cost Cost which changes with production Fixed cost Factory Rent Variable cost Cost of Raw material 2 Traceability to object Direct Cost See Answer

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Costs can be categorized in various ways, including thefollowing:Fixed versus variable costsRelevant versus irrelevant costsDirect versus indirectDiscuss the following in your main Discussion Board post:Why is it important for a company to know the categorization ofeach cost? Provide an example of each of the cost categorizationsabove.Why is it important to compare actual cost and budgetedcost?