A. two ways
B. three ways
C. four ways
D. several ways
Answer: Option D
Cost classification can be done in
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.
What is Cost Classification?
Cost classification involves the separation of a group of expenses into different categories. A classification system is used to bring to management’s attention certain costs that are considered more crucial than others or to engage in financial modelling.