Cost hierarchy categories


Use a selected company or your current work environment to identify at least one cost or expense that would fit under each of the following categories:

- Variable
- Fixed
- Mixed
- Step

Would your company be more likely to benefit from using a manufacturing cost hierarchy or a customer cost hierarchy for determining cost drivers? Explain your answer and identify one cost for each of the four cost hierarchy categories. Present your findings in a manner that could be shared with the class.

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Accounting Basics: Cost hierarchy categories
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