Cost Classification Descriptive Essay by Top Papers

This paper defines and discusses cost classification and their impact on financial statements. According to the paper, cost classification is critical if a firm is going to produce financial statements that not only comply with regulatory reporting requirements but that are also useful to executive leadership and investors. The paper further notes that costs that are inappropriately classified such as listing expenses as assets or inventory can make a financial statement appear more positive than it actually is. Additionally, this document also examines how cost accounting measures have improved the manufacturing cycle in manufacturing environments.