Determining and valuing stocks, the cost of products offered is easy in 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:

a. From the above information, identify the type of cost classification discussed. (250 words)

b. List and explain in your own words the different types of cost in that classification. (500 words)

c. Illustrating with your own examples and graph, the cost type in a total change in cost and per unit change in cost.