The costs which are related to different functions of the value chain of company, such as marketing and manufacturing costs are considered as __________?

Correct answer: C. business function costs

  • A. value costs
  • B. future function costs
  • C. business function costs
  • D. sunk function costs

Explanation

Marketing, manufacturing, distribution, and similar costs are grouped according to business functions across the value chain, so they are called business function costs. The term value costs is not the standard classification.

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About Cost Accounting

Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.

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