Question: Explain all the cost classification in terms of the factory that you are operating. Framework/Guideline Point 1 You are currently managing a factory. Identify the product that is being manufactured by your business. Point 2 Explain the concept of production. Explain the concept of cost (in general) that is associated to the product. Point 3 Explain the concept of direct cost associated to the product that your factory is producing. Explain the concept of direct material & direct labour. Identify the direct materials and direct labour cost involved in your chosen product. (Show the calculation of direct material and direct labour and record of these costs in Appendix A) Point 4 Explain the concept of indirect cost associated to the product. Explain the concept of manufacturing overheads. Identify the manufacturing overhead involved in the process of production. (Show the calculation of these costs in Appendix B). Hint: Show both Actual & Applied Overhead Point 5 Explain the concept of product cost and period cost associated to the product. Identify the product cost and period cost associated to your business. (Show the calculation of these costs in Appendix C) Point 6 Explain the concept of variable cost and fixed cost associated to the product. Identify the variable cost and fixed cost associated to your business. Point 7 Explain the concept of total manufacturing cost, work in process and cost of goods manufactured associated to the product. (Show the manufacturing account in Appendix D)