Cost refers the monetary measure of the amount of resources given up or used for some specified purpose. It is the value the goods or services expended to obtain current or future benefits. Cost can be classified in numerous ways and management accountants need to have clear understanding about the cost concepts because they are vital in many areas of planning, control, and decision-making.

Required: Explain the following terms and provide TWO (2) examples for each term. a. Manufacturing and non-manufacturing costs. b. Direct and indirect costs. c. Controllable and uncontrollable costs. d. Product and period costs. e. Fixed and variable costs