Problem
Cost serves several purposes for an organization: (a) planning and budgeting, (b) assisting in decision making, (c) comparing actual to budget (control), and (d) calculating income generated from operations and projects (score-keeping). Select one of these areas and produce a short document outlining the following items:
i. Identify one of the cost purposes listed above.
ii. Select two of the five cost classifications described in the text: financial statement presentation (cost function): cost behavior, assigning costs to products and services, costs for decision making, and cost of quality
iii. Describe how knowledge of cost, as described within its classification, is needed to effectively manage costs and improve the success of a project for the stated purpose.