1. How does a company identify each type of cost? Can a cost classification be changed over time? If yes, explain how and give an least one example.

1. How does a company identify each type of cost? Can a cost classification be changed over time? If yes, explain how and give an least one example. If no, explain why?

2. Explain the importance of CM and how it can be used by companies to predict future income. Create some examples with numbers to show how it can be used.