Questions:
1. Define ‘cost'.
2. Explain the need for cost classification.
3. Define ‘activity' and ‘output'.
4. Explain and distinguish variable costs and fixed costs.
5. Explain and distinguish direct costs and indirect costs.
6. Explain and distinguish product costs and period costs.
7. Explain how cost classification can be developed to be relevant to the circumstances of planning, decision making and control.
8. Explain and devise a cost coding system.
9. Explain how costs may be selected and reported for the type of activity required