Cost Classification

Abstract

In order to run a business successfully, managers need to know the cost of making the products or supplying the services. This information is required in some detail so that the cost of materials, wages and other items can be identified separately. The cost of an item can be very hard to determine and it is made more difficult by our differing perspectives, which vary according to whether we are buying or selling. There are also problems concerned with the meaning attached to the term cost which can be used as a verb, a noun or an adjective.