ABA 404 TOPIC 3: COST CLASSIFICATIONS

Institution	MASENO UNIVERSITY
Course	ABA 404:MANAGEMENT A...
Year	1st Year
Semester	Unknown
Posted By	Brian Mike
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Pages	12 Pages
File Size	401.81 KB
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Cost classification may be defined as ‘the arrangement of cost items in a logical sequence having regard to their nature and purpose to be fulfilled’. The term cost must be qualified when in use in order that it’s precise meaning is established in a particular situation; however, cost refers to the amount of resources that have been diverted from other uses or sacrificed so as to achieve the desired objective. But the term is used to refer to various aspects of cost; depending on the base of argument that one is approaching the issue from.

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