Cost classification is the act of separation of expenses in an organization into different categories each addressing different aspects of cost of production.This is so as to group related expenses into classes that ere manageable. Cost on the other hand can be looked at as the value of money that is used in the production process hence not available for reuse.
Cost classification is of value in any company due to its advantages particularly decision making process and long-term strategic planning.
The most useful technique of costing that that will work best at the Mal Ltd is the direct continuous costing method which as explained above will allow Mr. and Mrs. All the workers including the drives will be given imprestsystem to record any expense like the amount of fuel used and car maintenance costs.
It will also help him plan in advance with suppliers the supply of products that are often in short supply and organize the sales department through introduction of effective controls to regulate the movement of this products.