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What Are the Factors That Affect the Classification of a Cost

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What are the factors that affect the classification of a cost as direct or indirect?


Definitions:

Retained Earnings

The cumulative amount of net income kept in a company after dividends are paid, used for reinvesting in the business or paying down debt.

Stock Split

A corporate action that increases the number of a company's outstanding shares by dividing each share, which typically reduces the price of individual shares without changing the total market value.

Market Value

The current price at which an asset or service can be bought or sold, often used in the context of stocks, real estate, and other investments.

Share Capital

The amount of money raised by a company through the issuance of shares to its shareholders.

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