Costs can be categorized in the following ways:Actual vs. budgeted costFull cost vs. direct costFixed vs. variable vs. mixed costsRelevant vs. irrelevant costsProduct vs. periodDirect vs. indirectDiscuss the following questions:Why is it important for a company to know the categorization of each cost?How can this information be used in decision making?Provide an example of each of the cost categorizations above.Discuss the following questions:Why is it important for a company to know the categorization of each cost?How can this information be used in decision making?Provide an example of each of the cost categorizations above.
