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Classification of
                                         Cost



Nature       Function         Behavior            Control          Normality     Other



  Material     Production          Fixed           Controllable        Normal     Production



    Labor    Administration      Variable         Uncontrollable      Abnormal      Period



                 Sales &
  Expenses                        Mixed                                           Conversion
               Distribution



               Marketing          Direct                                           Relevant



                 Finance          Indirect                                        Irrelevant



               Research &
                                Conversion                                          Sunk
              Development



                                                                                 Opportunity

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Account Cost Accounting Chptr 1

  • 1. Classification of Cost Nature Function Behavior Control Normality Other Material Production Fixed Controllable Normal Production Labor Administration Variable Uncontrollable Abnormal Period Sales & Expenses Mixed Conversion Distribution Marketing Direct Relevant Finance Indirect Irrelevant Research & Conversion Sunk Development Opportunity