How can this information be used in decision making provide


Costs can be categorized in the following ways: Actual vs. budgeted cost Full cost vs. direct cost Fixed vs. variable vs. mixed costs Relevant vs. irrelevant costs Product vs. period Direct vs. indirect

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.

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Operation Management: How can this information be used in decision making provide
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