In the context of tuition industry, examine two (2) ways in which costs can be classified. For each classification, state the basis of the classification, the objectives of such classification, the main cost classifications and two (2) examples of each main classification. Use a format similar to Exhibit 2.2 (page 77) of the adopted eTextbook to present your answer.

EXHIBIT 2.2 Common cost classifications in management accounting Basis of classification Cost classifications Used to: Behaviour Variable Plan (budget) costs (see Chapter 3) - Unit level Control costs Engineered Make decisions Fixed - Committed - Discretionary Traceability Direct Estimate the cost of goods and services Indirect Estimate the cost of organisational units, such as departments or activities Controllability Controllable Measure managers' performance (see Chapter 12) Uncontrollable Control costs Value chain Upstream: Analyse cost structures and identify strategies - Research and development Measure performance - Design Control/manage costs - Supply Manufacturing/production Downstream: - Marketing - Distribution Customer service Manufacturing/ Direct material Estimate the cost of products product costs Direct labour Estimate the cost of goods sold for the income Manufacturing overhead statement, and inventory for the balance sheet Timing of the Product Prepare income statement and balance sheet expense Period