(Answered) Assignmentthis assignment has 3 partscosts can be

Finance

Assignment

This assignment has 3 parts:

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:

1. Why is it important for a company to know the categorization of each cost?
2. How can this information be used in decision making?
3. Provide an example of each of the cost categorizations above.

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Corporate Finance, Finance

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