Cost classification and recording

The following headings are suggestions that students may wish to incorporate in the body of
the project.
The profit and loss account and the balance sheet: types of costs and cost recording
methods. The project is likely to include notes on fixed, variable, step, and mixed costs. It
will also include information on direct and indirect costs and the marginal and absorption
costing systems. It is suggested that the student shows examples of both profit and loss
accounts and balance sheets, explaining the nature in the meaning of salient entries in the
examples

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