Discussion #3

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Cost Classifications

Use a selected company or your current work environment to identify at least one cost or expense that would fit under each of the following categories:

•Variable

•Fixed

•Mixed

•Step

Would your company be more likely to benefit from using a manufacturing cost hierarchy or a customer cost hierarchy for determining cost drivers? Explain your answer and identify one cost for each of the four cost hierarchy categories. Present findings in manner that could be shared with class