is one of most classification of costs by nature of production or operation process.
(a) Selling Cost
(b) Batch Cost
(C) Administration Cost
(d) Conversion Cost
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This aspect one of the most important classification of costs, into direct costs and indirect costs. This classification is based on the degree of traceability to the final product of the firm. Direct Costs: So these are the costs which are easily identified with a specific cost unit or cost centers.
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