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What is the difference between cost classification in management accounting and traditional cost classification?
Cost behavior analysis and cost behavior classification are two related and different categories in management accounting. The difference is: 1, with different nature, cost behavior analysis includes qualitative analysis and quantitative analysis, while cost classification by behavior belongs to qualitative analysis; 2. With the different final results, cost behavior analysis divides all costs into fixed costs and variable costs, and establishes corresponding cost models, while cost classification divides all costs into fixed costs, variable costs and mixed costs. The connection is that these two methods are based on the total cost of the enterprise, and the analysis of cost behavior needs to classify the cost based on behavior.
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