Essay on Cost Classification
Example of selling and distribution costs are: sales men salary,
packing charges, carriage, out ward, advertisement, ware house charges etc.
On the basis of Variability: The behavior of cost varies from one another as production increases, some cost remains
constant or varies in direct proportion to the volume of out put, or others may vary partially. Thus on the basis of
variability, costs can be classified into the following three categories.
(a) Fixed Cost / Period Cost: Fixed