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Case: Cost Classification Determining and valuing stocks, cost of products offered is easy in a retailing business; however it is tough in a producing business.

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Case: Cost Classification Determining and valuing stocks, cost of products offered is easy in a retailing business; however it is tough in a producing business. It is to be kept in mind that the majority of the time the exact same cost can be categorized in various methods for that reason, stating that cost has various types is a bit loose understanding since numerous at times it is the exact same cost being categorized in a different way as we take a look at the very same thing from various point of views. "Cost may be classified in a variety of ways according to their nature and the information needs of management." Question: (2 + 4 + 4 = 10 Marks) From the above case, identify the type of cost classification discussed. b. List and explain in your own words the different type of cost in that classification based on above case. c. Illustrating with your own examples and graph, the cost type in total change in cost and per unit change in cost based on above case. ALL THE BEST QUESTIONS: Scenario 1: As part of an international trade agreement, the Oman government reduces the tax on imported coffee. a. Will this affect the supply or the demand for coffee? Why? b. Which determinant of demand or supply is being affected? Explain. c. Show graphically the effect of changes in demand or supply. d. How will this change the equilibrium price and quantity of coffee? Explain your reasoning Scenario 2: The Ministry of health publishes a study finding that coffee drinking reduces the probability of getting cancer. a. How do you imagine this will affect the market for coffee? Why? b. Which determinant of demand or supply is being affected? Explain. c. Show graphically the changes in demand or supply. d. Will this change the equilibrium price and quantity of coffee? Explain your reasoning

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