Name three cost classifications, and state the differences among them.

What will be an ideal response?


The three major cost classifications are nonrecurring or recurring costs, fixed or variable costs, and direct or indirect Costs.
Nonrecurring are one-time costs, such as capital or manufacturing equipment. Recurring costs are incurred during manufacturing and may be required each time a part is made.

Fixed costs are independent of how many parts are made and include items such as investment, overhead, management, and sales expenses.

Variable costs change with the quantity of manufactured parts and include the cost of labor, utilities, maintenance, royalties, etc.

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Answer the following statement true (T) or false (F)

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The primary function of a diac is to ____.

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Almost all of the broilers produced are tan

Indicate whether the statement is true or false

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