Which of the following is NOT a type of cost classification?

The classification of costs typically includes fixed costs, variable costs, and total costs, each serving a specific purpose in financial analysis and decision-making.

Fixed costs are expenses that do not change with the level of output or sales, such as rent and salaries. These costs remain constant regardless of how much a company produces or sells.

Variable costs, on the other hand, fluctuate with production levels. These costs include materials, labor, and other resources that vary depending on the amount of goods or services produced.

Total costs represent the sum of all fixed and variable costs at any given level of production. This figure provides a comprehensive view of the overall expenses incurred by a business.

Indirect costs are typically not categorized under the main classifications of cost types in standard cost accounting. They refer to expenses not directly attributable to a specific product or service, such as administrative expenses or utilities, which are not as commonly recognized as the major classifications of fixed, variable, and total costs. Thus, this classification does not fit within the primary categories typically taught in economics or managerial accounting, making it the correct answer in identifying which is not a type of cost classification.