What Are the Different Types of Costing?

Costing taxonomy is a method of calculating costs by product category. The costing classification is an extension of the costing variety method. Some enterprises have many varieties of products. Calculating the cost of products according to the variety method is very cumbersome. The classification method is used to first group production costs according to product categories, calculate the category costs of products, and then allocate to calculate the costs of various products. This method is applicable to manufacturers of products of multiple varieties and specifications with the same raw materials, such as electronic component manufacturers and chemical reagent manufacturers. ^[1]