ABSTRACT
After studying this chapter, you should have developed an appreciation of
1. How the range of decision-making and control situations confronted by
managers results in many different cost classifications
2. What is meant by an opportunity cost
3. What is meant by direct and indirect costs
4. Methods that can be used to allocate indirect costs to departments
5. What is meant by fixed and variable costs
6. What is meant by incremental and sunk costs.
