BSA02: ACCOUNTING REVIEW COURSE

MANAGEMENT ADVISORY SERVICES REVIEW

ROBIN R. DE VERA, CPA, MBA CAND.

COST DEFINITION, CONCEPTS, CLASSIFICATION & ANALYSIS

Cost Definition - the sacrifices made in order to achieve the objectives.

Types of Costs
As to financial statement presentation
1. Cost of Sales
a. Merchandising - Merchandise Inventory - units purchased with the intention of re-
selling with little or no alteration. The cost includes the Purchase Price + Other Directly
Attributable Costs
b. Manufacturing
i. Direct Materials - include those items that become an integral part of a
finished product, and can be conveniently traced into it. The cost includes
Purchase Price + Other Directly Attributable Costs
ii. Direct Labor - consists of those labor costs that can be easily traced to the
creation of product. Also called touch labor. Cost includes Salary and other
benefits given like SSS, Philhealth, etc.
iii. Manufacturing Overhead: All other product costs not classified as Direct
Materials or Direct Labor
1. Indirect Materials used to support the production process. They
too costly and inconvenient to trace such small costs to the
individual units that are produced. Examples: lubricants and
cleaning supplies used in the automobile assembly plant.
2. Indirect Labor Wages paid to employees who are not directly
involved in production work. Examples: maintenance workers,
janitors, and security guards.
c. Special Classifications:
i. Prime Cost = Direct Materials + Direct Labor
ii. Conversion Cost = Direct Labor + Manufacturing Overhead
2. Operating Expenses (Cost to Sell)
a. Selling Expenses from the time the product is being offered for sale up to the time the
product is delivered including post-sale services.
b. General and Administrative - general administration and management of the company
3. Financing Costs

As to Purpose: Product versus Period depending on the costing method (Throughput, Variable and
Absorption Costing)
1. Product (Inventoriable) - are matched with units of product ad a recognized as an expense on
the income statement only when the units are sold. Until that time, product costs are
considered to be assets and are recognized on the balance sheet as inventory.
2. Period (Non-Inventoriable) - are expensed on the income statement in the period in which they
are incurred.

As to Traceability: Direct or Indirect depending on the Cost Object - anything that will be the focus of
cost information.
1. Direct Costs - physically and easily traceable to the cost object under consideration and
material in costs.
a. Cost Tracing - the process of identifying direct cost.
2. Indirect Costs - is a cost that cannot be conveniently traced to the cost object.
a. Cost Allocation- the process of incorporating (including/adding) indirect cost to the cost
object.

As to Behavior: Variable or Fixed depending on the cost driver and relevant range.
Cost Driver (Activity Based) - those that causes the incurrence of costs

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 BSA02: ACCOUNTING REVIEW COURSE
MANAGEMENT ADVISORY SERVICES REVIEW

ROBIN R. DE VERA, CPA, MBA CAND.

Relevant Range - the level of activity wherein the classification of costs is valid.
1. Variable Cost - changes in total, in direct proportion to changes in the level of activity. (Constant
per unit)
a. Pure or Real directly proportionate to the level of activity based
b. Step - increase in small steps (small chunks)
2. Fixed Cost Total cost does not change with changes in the volume of activity. (Constant in total)
a. Discretionary the result of a management decision to spend a particular amount of
money for some purpose
b. Committed - cannot be significantly reduced even for short period of time without
making fundamental changes
3. Mixed Costs
a. Contains both variable and fixed costs elements
b. Expressed in terms of a cost function: y = a+bx
c. Must be analyzed and segregated into its variable and fixed component.

As to Controllability: Controllable versus Non-Controllable depending on the Decision Maker

(Responsible Entity)- those that has the capacity to decide that incurrence of costs.
1. Controllable - costs that can be influenced by a decision
2. Non-Controllable - costs that are influenced by another party's decisions

As to Role in Decision Making:

1. Differential Costs - costs that differs between alternatives
2. Opportunity Costs - benefits that are foregone by choosing another alternative
3. Sunk Costs - costs that are already incurred and paid for and cannot be returned

As to Quality - costs associated with non-achievement of product/service quality.

 Cost of Achieving Good Quality
o Prevention costs - costs incurred before any defect has occurred.
o Appraisal costs - costs of measuring, testing, and analyzing whether a defect has
occurred.
 Cost of Poor Quality
o Internal failure costs - defects detected inside the company's premises include scrap,
rework, process failure, downtime, and price reductions
o External failure costs - defects were detected outside or by a customer include
complaints, returns, warranty claims, liability, and lost sales
o
Phases in Analyzing Mixed Costs
Cost Cost Cost
Behavior Estimation Prediction

1. Cost Behavior- identifying whether a particular cost is variable, fixed or mixed

2. Cost Estimation - determining the variable (per unit costs) and fixed (total) components
3. Cost Prediction - forecasting the cost to be incurred in connection with the expected activity
level

Methods of Analyzing Mixed Costs

Qualitative Approach - uses human judgment
1. Account Analysis (What the cost has been?) - Based on the analyst's (usually the controller)
prior knowledge of how the cost behaves
2. Engineering Approach (What the cost should be?)- Based on an industrial engineer's evaluation
of different activities, required resources (human, equipment, etc.), efficiency, etc.
Quantitative Approach - (uses quantitative data)

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 BSA02: ACCOUNTING REVIEW COURSE
MANAGEMENT ADVISORY SERVICES REVIEW

ROBIN R. DE VERA, CPA, MBA CAND.

1. High-Low
a. Choosing the highest and lowest activity level within the relevant range
𝑌2−𝑌1
b. Slope of the line: 𝑏 = 𝑋2−𝑋1
c. Y-intercept: 𝑎 = 𝑌 − 𝑏𝑋
2. Scattergraph or Visual Fit
a. Drawing a line over a set of plotted data points
b. Determine the fixed cost (y intercept) by drawing a line over a plotted data point
3. Least-Square Regression Analysis - an averaging method that is an expansion of the
expression
𝑛(∑ 𝑥𝑦)−(∑ 𝑥)(∑ 𝑦) ∑ 𝑦−𝑏(∑ 𝑥)
a. Formula:𝑏 = 𝑎=
𝑛(∑ 𝑥 2 )−(∑𝑥) 2 𝑛
b. Slope or gradient of a line is a number that describes both the direction and the steepness of
the line. (Represented by the variable cost per unit)
c. Y-Intercept - the point at which the line crosses the y axis. (Represented by the total fixed cost
since total cost (y) will always start at fixed cost even if there is no activity (x)
d. Co-efficient of Correlation (r) - It is the measure of the relationship between two sets of data.
Its value always lies between -1 to +1.
i. Positive Correlation - When the values of one variable increase with that of another
are increased.
ii. Negative Correlation - When the values of one variable decrease with that of
another are increased or vice versa.
iii. No Correlation - There is no impact on one variable with an increase or decrease
of values of another variable.
e. Co-efficient of Determination (r-squared) - indicates how well data points fit a statistical model
- sometimes simply a line or curve. It is a statistic that will give some information about the
goodness of fit of a model.
f. Standard Error - is the standard deviation of the sampling distribution of a statistic. The term
may also be used to refer to an estimate of that standard deviation, derived from a particular
sample used to compute the estimate.

Reports Pertaining to Cost Information

ABC Corporation
Statement of Cost of Goods Manufactured
For the period ended ______

Beginning-Direct Materials xx
Purchases (net) xx
Total Available for Use xx
Less: Ending - Direct Materials (xx)
Direct Materials Used xx
Direct Labor xx
Manufacturing Overhead xx
Total Manufacturing Costs xx
Beginning - Work-In Process xx
Total Goods Put Into Process xx
Ending - Work-In Process (xx)
Cost of Goods Manufactured xx

ABC Corporation
Statement of Cost of Goods Sold
For the period ended _____

Beginning - Finished Goods xx

Cost of Goods Manufactured xx
Total Goods Available for Sale xx
Ending - Finished Goods (xx)
Cost of Goods Sold xx

- End of Lecture –

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 BSA02: ACCOUNTING REVIEW COURSE
MANAGEMENT ADVISORY SERVICES REVIEW

ROBIN R. DE VERA, CPA, MBA CAND.

Cost Definition, Concepts, Classification, & Analysis

Practice Quizzer

1. Which of the following will most likely be classified as product costs?

a. Depreciation on salesperson's cars.
b. Salaries of personnel who work in the finished goods warehouse.
c. Soap and paper towels used by factory workers at the end of a shift.
d. None of the above.
2. All of the following will be classified as product costs, except:
a. Rent on equipment used in the factory
b. Lubricants used for machine maintenance
c. Factory supervisor's salaries
d. None of the above
3. Period costs will include:
a. Heat, water, and power consumed in the factory.
b. Materials used for boxing products for shipment overseas.
c. Workers' compensation insurance for factory employees.
d. Depreciation on chairs and tables in the factory lunchroom.
4. Product coats will include:
a. Advertising costs
b. The cost of packaging the company's product
c. Lubricants used for production equipment
d. None of the above
5. All of the following will be classified as period costs, except:
a. The wages of the receptionist in the administrative offices
b. Cost of leasing the corporate jet used by the company's executives
c. The cost of renting rooms at a Florida resort for the annual sales conference
d. None of the above
6. Direct costs will include:
a. Electricity to run factory lighting
b. Rent on factory equipment
c. Yarn used to make sweaters
d. Factory foreman's salary
7. Indirect costs will include
a. Wages of laborers on the assembly line
b. Factory security salaries
c. Apples used in applesauce
d. None of the above
8. Which of the following will most likely be classified as indirect?
a. Depreciation of lathes used to make furniture.
b. Supplies used to maintain manufacturing equipment.
c. Property taxes on the raw materials warehouse
d. All of the above
9. Classifying a cost as either direct or indirect depends upon:
a. The behavior of the cost in response to volume changes
b. Whether the cost is expensed in the period in which it is incurred
c. Whether the cost can be easily identified with the cost object
d. Whether an expenditure is avoidable or not in the future
10. Which of the following is least likely to be classified as direct cost?
a. Ginger used in tea manufacturing
b. Wages of workers assembling a product
c. Cost of graphite used in producing hockey stick
d. Insurance on equipment used in producing hockey sticks

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 BSA02: ACCOUNTING REVIEW COURSE
MANAGEMENT ADVISORY SERVICES REVIEW

ROBIN R. DE VERA, CPA, MBA CAND.

least likely
11. Which is likely to be classified as variable costs
a. Wages of the workers assembling computers
b. Boxes used for packaging detergent produced by the company
c. Yarn used in sweater production
d. Magazine subscriptions, factory lunchroom
12. All of the following will be generally classified as fixed costs, except:
a. Supervisor's salary, factory
b. Executive life insurance
c. Fringe benefits, assembly-line workers
d. Lubricants for machines
13. Variable costs
a. Remains constant per unit but varies in total
b. Remains constant both on a per unit and in total basis
c. Remains constant in total but varies per unit
d. Both per unit and in total varies with cost driver
14. Fixed costs
a. Remains constant per unit but varies in total
b. Remains constant both on a per unit and in total basis
c. Remains constant in total but varies per unit
d. Both per unit and in total varies with cost driver
15. Microchips used in producing calculators is most likely a
a. Direct and fixed cost
b. Direct and variable cost
c. Indirect and fixed cost
d. Indirect and variable cost
16. Wage of receptionist, executive offices is most likely an example of
a. Direct and fixed cost
b. Direct and variable cost
c. Indirect and fixed cost
d. Indirect and variable cost
17. Which of the following is most likely a committed cost?
a. Salaries of contractual employees
b. Advertising
c. Utilities expense wherein rates are being set by government
d. Training costs for employees
18. Which of the following is least likely to be a committed cost?
a. Depreciation of production equipment
b. Salaries of permanent employees
c. Property tax on factory building
d. None of the above
19. Which of the following is most likely NOT a discretionary cost?
a. Advertising
b. Insurance
c. Conferences
d. Management consulting

Use the following information that pertains to beta manufacturing company to answer questions 20
through 22:
Beginning direct materials inventory P 20,000
Beginning WIP inventory 20,000
Beginning finished goods inventory 40,000
Ending direct materials inventory 10,000
Ending WIP inventory 100,000
Ending finished goods inventory 50,000

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 BSA02: ACCOUNTING REVIEW COURSE
MANAGEMENT ADVISORY SERVICES REVIEW

ROBIN R. DE VERA, CPA, MBA CAND.

Purchases 140,000
Direct labor 160,000
Factory overhead 200,000

20. What is the amount of direct materials used during the period?
a. P140,000 20,000+140,000-10,000=150,000
b. P130,000
c. P 60,000
d. P150,000
21. What is the amount of cost of goods manufactured during the period?
a. P430,000
150,000+160,000+200,000+20,000-100,000=430,000
b. P420,000
c. P470,000
d. P510,000
22. What is the amount of cost of goods sold during the period?
a. P430,000
b. P420,000 430,000+40,000-50,000=420,000
c. P470,000
d. P510,000

Items 23 to 27 are based on the following information:

Albay Corporation had the following movement in its inventories for the month of January:
Direct materials P 8,000 decrease
Work-in process 16,000 decrease increase
Finished goods 10,000 decrease

The following additional manufacturing data were available for the month of January:
Direct materials purchased P 189,000
Purchase returns and allowances 1,000
Freight-in 3,000
Direct labor 300,000
Indirect labors 50,000
Lubricants (used in production equipment 25,000
Factory utilities 100,000

Albay Corporation applies factory overhead at a rate of 60% of direct labor cost, and any over-applied
or under applied factory overhead is deferred until the end of the year, December 31.

23. Albay Corporation' s prime cost for January was

a. P199,000
8,000+189,000-1,000+3,000+300,000=499,000
b. P501,000
c. P499,000
d. P201,000
24. Albay's total manufacturing cost for January was
a. P681,000
499,000+(300,000x60%)=679,000
b. P665,000
c. P489,000
d. P679,000
25. Albay's cost of goods manufactured for January was
a. P665,000
679,000-16,000=663,000
b. P681,000
c. P663,000
d. P657,000

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 BSA02: ACCOUNTING REVIEW COURSE
MANAGEMENT ADVISORY SERVICES REVIEW

ROBIN R. DE VERA, CPA, MBA CAND.

26. Albay's cost of goods sold for January was

a. P697,000 663,000+10,000=673,000
b. P681,000
c. P673,000
d. P657,000
27. Albay's balance in factory overhead control account for January was
a. P5,000 under Actual 180,000 = overapplied 5,000
b. P5,000 over (175,000)
c. -0-
d. None of the above

Items 28 to 32 are based on the following information:

Direct materials purchased P 50,000 25,000
Ending direct materials inventory 35,000 50,000
Increase in work in process inventory 20,000 (35,000)
Cost of goods manufactured 120,000 40,000
100,000
Conversion costs 100,000 140,000
(20,000)
28. What are total manufacturing costs? 120,000
a. P40,000
b. P75,000
c. P140,000
d. P25,000
29. What is the amount of direct materials used?
a. P40,000
b. P75,000
c. P140,000
d. P25,000
30. What is the value of the beginning direct materials inventory?
a. P40,000
b. P75,000
c. P140,000
d. P25,000
31. What is the amount of materials available for production?
a. P40,000
b. P75,000
c. P140,000
d. P25,000
32. If the ending work-in process inventory is P20,000 greater than the beginning work-in process
inventory, and if cost of goods manufactured is P 100,000, what are total manufacturing costs?
a. P100,000
b. P80,000 100,000+40,000-20,000=120,000
c. P120,000
d. None of the above
33. The following data were taken from the income statement of Batangas Corporation.
Units Produced 10,000 12,000 14,000
Utilities 20,000 24,000 28,000
Salaries and Wages 70,000 80,000 90,000
Depreciation 40,000 40,000 40,000
Repairs and Maintenance 30,000 36,000 42,000
Indirect Materials 45,000 53,000 61,000

Which of the given items will be classified as variable costs?

a. Utilities and Salaries and Wages

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 BSA02: ACCOUNTING REVIEW COURSE
MANAGEMENT ADVISORY SERVICES REVIEW

ROBIN R. DE VERA, CPA, MBA CAND.

b. Utilities, Salaries and Wages, and Repairs and Maintenance

c. Utilities and Indirect Materials
d. Utilities and Repairs and Maintenance
34. The following information summarizes total production costs and number of units of product
produced by Company B over the last 6 months:
Month Total Cost Units Produced
1 P 24,000 30,000 30,000-24,000/42,000-30,000=.5
2 30,000 42,000 30,000-(42,000x.50)=9,000
3 28,000 40,000 24,000-(30,000x.50)=9,000
4 27,000 34,000
5 25,000 32,000
6 23,000 31,000

Using the high-low method, the estimated cost function for this product is
a. Y = 9,000 + 0.500 x number of units produced
b. Y = 7,500 + 0.585 x number of units produced
c. Y = 3,285 + 0.636 x number of units produced
d. Y = 493 + 0.726 x number of units produced
35. Edgar has been reviewing its total costs over the last few periods and has established the
following:
Period Total Sales Total Cost 2,300-1,500/350-150=4
2,300-(350x4)=900
1 225 units P 2,300 2,300-500=1,800 1,500-(150x4)=900
2 150 units 1,500
3 350 units 2,800 2,800-500=2,300

The company is aware that fixed costs increase by P500 when sales exceed 200 units. What would be
the total cost at a sales level of 180 units?
a. P2,120
Y=900+4(180)
b. P1,800 Y=1,620
c. P1,695
d. P1,620
36. The Barnett Company has assembled the following data pertaining to certain costs that cannot
be easily identified as either fixed or variable. Barnett Company has heard about a method of
measuring cost functions called the high-low method and has decided to use it in this situation.
Cost Hours
24,900 P24,000 5,250 44,160-24,900/9,750-5,250=4.28
44,160-(9,750x4.28)=2,430
24,000 5,500
24,900-(5,250x4.28)=2,430
36,400 7,500
44,160 9,750
45,000 9,500

What is the cost function?

a. y = P43,191 + P0.19X
b. y = P41,900 + P0.23X
c. y = P4,875 + P5.25X
d. y = P2,430 + P4.28X

Item 37 to 38 are based on the following information: The following graph pertains to the total
maintenance cost of Tarlac Corporation:

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 BSA02: ACCOUNTING REVIEW COURSE
MANAGEMENT ADVISORY SERVICES REVIEW

ROBIN R. DE VERA, CPA, MBA CAND.

4,000-1,500/400-0=6.25
4,000-(400x6.35)=1,500
1,500-(0x6.25)=1,500

37. The cost function of the total maintenance cost would be?
a. Y = 1,500 + 0.275x
b. Y = 1,500 + 6.25x
c. Y = 4,000 + 6.25x
d. Cannot be determined from the given data
38. How much would be the total variable maintenance cost if the activity level would be 300?
a. P1,875 6.25x300=1,875
b. P3,375
c. P1,587.50
d. P1,500
39. How much would be the total maintenance cost if the activity level would be at 600?
a. P3,750
Y=1,500+(6.25x600)
b. P1,500 Y=5,250
c. P5,250
d. P1,665
40. A company has recorded its total cost for different levels of activity over the last five months
as follows:
Month Activity Level (Units) Total Cost xy x2
n=5
EX=1,660 7 300 P17,500 5,250,000 90,000
EY=93,000 8 360 19,500 7,020,000 129,600
EXY=31,150,000 9 400 20,500 8,200,000 160,000
EX2=560,400 5,920,000 102,400
10 320 18,500 4,760,000 78,400
11 280 17,000
The equation for total cost is being calculated using regression analysis on the above data. What is
the value of 'a' (to the nearest peso) in the total cost equation?
a. 7,338 (93,000=5a+b1,660)-332 31,150,000=1,660a+b560,400 93,000=5a+(29.53)(1,660)
31,150,000=1,660a+b560,400 -30,876,000=-1660a-b551,120
b. 8,796 93,000=5a+49,020
-30,876,000=-1660a-b551,120 274,000= b9,280
c. 10,430 5a=43,980
b=29.53 a=8,796
d. 10,995
41. The following statements relate to the calculation of the regression line y = a + bx using the
least square method:
(i) n represents the number of pairs of data items used
(ii) (Ʃx)2 is calculated by multiplying Ʃx by Ʃx
(iii) Ʃxy is calculated by multiplying Ʃx by Ʃy
Which statements are correct?
a. (i) and (ii) only
b. (i) and (iii) only
c. (ii) and (iii) only
d. (i), (ii), and (iii)
42. Regression analysis is being used to find the line of best fit (y=a+bx) from eleven pairs of data.
The calculations have produced the following information:

Ʃx = 440; Ʃy = 330; Ʃx2 = 17,986; Ʃy2 = 10,366 and Ʃxy = 13,467

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 BSA02: ACCOUNTING REVIEW COURSE
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ROBIN R. DE VERA, CPA, MBA CAND.

What is the value of "a" in the equation for the line of best fit (to 2 decimal places)?
a. 0.63 (330=11a+b440)-40
330=11a+(.69x440)
b. 0.69 13,467=440a+b17,986
330=11a+304
-13,200=-440a-b17,600
c. 2.33 267= b386
11a=26
d. 5.33 a=2.36
b=.69
43. The following activity and cost data that were provided by Hoist Corporation would help in
estimating its future maintenance costs:
n=4 Units Maintenance Costs xy x2
EX=36 3 P450 1,350 9
EY=2,320 7 P530 3,710 49
EXY=22,600 11 P640 7,040 121
EX2=404 10,500 225
15 P700

Using the least-squares regression method to estimate the cost formula, the expected total cost for an
activity level of 10 units would be closest to:
a. P612.50 (2,320=4a+b36)-9 2,320=4a+(21.5x36) Y=386.5+(21.5x10)
b. P581.82 22,600=36a+b404 2,320=4a+774 Y=386.5+215
-20,880=-36a-b324 4a=1,546
c. P595.84 Y=601.5
1,720= b80 a=386.5
d. P601.50
b=21.5

Items 44 to 47 are based on the following information

As part of a cost study, the cost accountant of Romblon Corporation Inc. Has recorded the cost of
operations at seven different level of material usage. This information is shown as follows:
Kilos of Cost of
Materials Operations xy x2
n=7 100,000
EX=700 100 P 1,000 10,000
75 600 45,000 5,625
EY=7,000 10,000 625
EXY=852,500 25 400 225,000
EX2=87,500 22,500
150 1,500 280,000 30,625
175 1,600 30,000 2,500
50 600 162,500 15,625
125 1,300

44. Using the high-low method, the variable coat of operations per kilos of materials used is
a. P7.80 1,600-400/175-25=8
b. P8.00
c. P9.14
d. P16.00
45. Using the same high-low method, the fixed cost of operation is:
a. P200
1,600-(175x8)=200
b. P400 400-(25x8)=200
c. P1,200
d. P1,600
46. Using the least-square method, the average rate of variable per kilo of materials used is:
a. P5.16 (7,000=7a+b700)-100
b. P8.71 852,500=700a+b87,500
-700,000=-700a-b70,000
c. P10.84 152,500= b17,500
d. P11.64 b=8.71
47. Using the least-square method, the fixed portion of the cost is
a. P109 7,000=7a+(8.71x700)
b. P129 7,000=7a+6,097
c. P200 7a=903
a=129
d. P271

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 BSA02: ACCOUNTING REVIEW COURSE
MANAGEMENT ADVISORY SERVICES REVIEW

ROBIN R. DE VERA, CPA, MBA CAND.

Items 48 to 51 are based on the following information:

Ealsy Company's quality cost report is to be based on the following data:
Maintenance of test equipment 95,000
Cost of field servicing and handling complaints 17,000
Statistical process control activities 77,000
Net cost of scrap 62,000
Downtime caused by quality problems 23,000
Technical support provided to suppliers 93,000
Depreciation of test equipment 81,000
Supplies used in testing and inspection 33,000
Warranty repairs and replacements 24,000

48. What would be the total prevention cost appearing on the quality cost report?
a. P172,000
b. P170,000
c. P174,000
d. P94,000
49. What would be the total appraisal cost appearing on the quality cost report?
a. P114,000
b. P95,000
c. P128,000
d. P209,000
50. What would be the total internal failure cost appearing on the quality cost report?
a. P85,000
b. P143,000
c. P40,000
d. P86,000
51. What would be the total external failure cost appearing on the quality cost report?
a. P41,000
b. P505,000
c. P126,000
d. P40,000
52. Worker training is a(n)
a. Appraisal cost
b. External failure cost
c. Internal failure cost
d. Prevention cost
53. The quality costs that are incurred to determine whether particular units of product meet
quality standards are
a. Appraisal costs
b. External failure costs
c. Internal failure costs
d. Prevention costs
54. The cost of downtime on machines while rework is being performed is a(n)
a. Appraisal cost
b. External failure cost
c. Internal failure cost
d. Prevention cost
55. Which of the following represents an external failure cost?
a. reprocessing a defective product before shipment
b. replacing a defective product after shipment
c. hiring for quality
d. inspecting products during production
- NOTHING FOLLOWS –

MASR2205- COST DEFINITION, CONCEPTS, CLASSIFICATION & ANALYSIS Page 11 of 11