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Discuss the major categories of cost

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Reference no: EM13213716 , Length: 600 words

It is budget time and the CEO has asked you to develop a presentation on cost concepts and how it is used in decision making. The types of cost are: controllable & noncontrollable, direct and indirect cost, traceability to the object being costed and behavior of cost. As the Director of Budgeting and Finance, you have been tasked to present the presentation to all directors, supervisors and physicians. The CFO has ask you to address the following:

  • How and why do we classify cost?
  • Discuss the four major categories of cost and explain each. Give examples of each.
  • What is the difference between controllable and uncontrollable cost, give an example of each.
  • Write a 400-600 words.

Reference no: EM13213716

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