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The purpose of the Discussion Board is to allow students to learn through sharing ideas and experiences as they relate to course content and the DB question. Because it is not possible to engage in two-way dialogue after a conversation has ended, no posts to the DB will be accepted after the end of each unit.
This assignment has 3 parts:
Costs can be categorized in the following ways:
- Actual vs. budgeted cost
- Full cost vs. direct cost
- Fixed vs. variable vs. mixed costs
- Relevant vs. irrelevant costs
- Product vs. period
- Direct vs. indirect
Discuss the following questions:
- Why is it important for a company to know the categorization of each cost?
- How can this information be used in decision making?
- Provide an example of each of the cost categorizations above.