WRITE YOU ANSWER IN A YELLOW SHEET OF PAPER AND UPLOAD YOUR ANSWER THRU THE

COMMENT SECTION.

ASSIGNMENT #1

1. What are the 4 types of cost?

Fixed Costs: These are costs that remain constant regardless of the level of production or sales. Fixed
costs do not change in the short term, even if the production output increases or decreases. Examples
include rent, salaries of permanent staff, and insurance premiums.

Variable Costs: Variable costs fluctuate in direct proportion to the quantity of goods or services
produced. As production increases, variable costs increase; as production decreases, variable costs
decrease. Raw materials, direct labor, and commissions based on sales are examples of variable costs.

Semi-Variable Costs (or Mixed Costs): Semi-variable costs have both fixed and variable components.
The fixed portion remains constant, while the variable portion changes based on production levels. An
example might be a supervisor's salary, which includes a fixed amount and a variable bonus based on
team performance.

Total Costs: Total costs encompass all expenses incurred by a company in the production of goods or
services. It includes both fixed and variable costs and represents the complete economic cost of
production.

2. What are the 2 classification of cost?

Fixed Costs: These costs remain constant irrespective of changes in production or sales volume. They
do not vary with the level of output or sales. Examples include rent, insurance premiums, and salaries
of permanent staff.
Variable Costs: Variable costs fluctuate in direct proportion to changes in production or sales volume.
As production increases, variable costs increase; as production decreases, variable costs decrease.
Examples include raw materials, direct labor, and commissions based on sales.

3. What are the classification of cost and its elements?

Material Cost: The cost of raw materials, components, and supplies used to manufacture a product.
Labor Cost: The cost of labor, including wages, salaries, benefits, and bonuses paid to employees
involved in production.
Expenses: Other costs incurred in the production process, such as utilities, rent, and depreciation.

4. What are the classification of cost in financial management?

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COMMENT SECTION.

ACTIVITY #2

1. What's meant by cost?

2. What is cost definition in accounting?

3. What does cost mean in business?

4. What is cost in terms of economics?