Cost classification is the process of categorizing costs based on:a.Time periodsb.Payment methodsc.Cost behaviord.All of the aboveClear my choice

Cost classification is the process of categorizing costs based on different factors. Let's break down the options provided:

a. Time periods: This refers to categorizing costs based on the time period in which they are incurred. For example, costs can be classified as short-term or long-term, depending on when they are expected to be paid.

b. Payment methods: This involves categorizing costs based on the method of payment. For instance, costs can be classified as cash costs or credit costs, depending on how they are paid.

c. Cost behavior: This refers to categorizing costs based on how they change in relation to changes in activity levels. Costs can be classified as fixed costs, variable costs, or semi-variable costs, depending on their behavior.

So, cost classification involves considering all of the above factors to categorize costs appropriately.