This classification is based on cost behaviour. It is one of the most useful classifications f.r the purpose of cost planning and control. Cost behaviour means how a cost will react or respond to changes in the level of business activity. Fixed Cost. A
Mixed or Semi variable Cost
Mixed or Semi variable Cost is a cost composed of a mixture of fixed and variable components. Costs are fixed for a set level of production or spending, becoming variable after the level exceed.
Cost Terms, Concepts, and Classifications: After Studying this chapter you should be able to: Identify and give examples of each of the three basic manufacturing cost categories. Distinguish between product costs and period costs and give examples of each. Prepare an income statement including