Vidyalelo
Commerce · Q58

Costing

Graduate and Post Graduate · Commerce · question 58

Q58

Classification of cost is useful ________.

A.
to find gross profit
B.
to find net profit
C.
to identify costs
Answer
D.
to identify efficiency

Answer: Option C

Solution

Answer: Option C
Solution:
Classification of cost is useful to identify costs. All the costs of a business can be classified into production costs, administration costs, finance costs, selling costs, distribution costs, research and development costs.