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Technical note
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Reference no. UVA-C-2507
Published by: Darden Business Publishing
Originally published in: 2025
Version: 20 March 2025

Abstract

This note highlights the importance of costs in management decision-making, focusing specifically on the notion that costs that should be considered when making decisions depends on the decision at hand. Several cost classifications are discussed: direct and indirect costs, product and period costs, and variable and fixed costs.

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Abstract

This note highlights the importance of costs in management decision-making, focusing specifically on the notion that costs that should be considered when making decisions depends on the decision at hand. Several cost classifications are discussed: direct and indirect costs, product and period costs, and variable and fixed costs.

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