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Behavioral Classification of Costs
Definition
Cost behavior refers to the change in costs as increase or may decrease like the output level changes that are like we rising output, are the costs increasing, remaining or dropping the similar.
Cost Behavior can be utilized to produce different classifications of costs like:
a) Variable Costs Vs. Fixed Costs
b) Direct Vs. Indirect costs
c) Controllable Vs. Non Controllable costs
Morrow Company applies overhead based on direct labor hours. At the beginning of the year, Morrow estimates overhead to be $620,000, machine hours to be 180,000, and direct labor h
What are the importance of cost classification
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