Choose a company that you already know and/or can find cost information about on the internet.

Required
1. Why is cost classification important for decision making, planning and control of companies.
2. Please give examples of costs that could be considered as:
(a) Variable costs
(b) Fixed costs
(c) Direct costs
(d) Indirect costs
(e) Common costs
(f) Sunk cost
3. Explain the concept of opportunity costs:
(a) What does it mean
(b) Why is the concept important for companies
(c) How does it tie together with the other costing concepts