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1 Managerial Accounting and Cost Concepts

Learning Objectives LO

LO1 Distinguish the different purposes of financial accounting and managerial accounting

LO2  Distinguish between product and period costs and classify product costs as direct material, direct labor, or manufacturing overhead

LO3  Distinguish between fixed, mixed, and variable costs, and relate them to cost drivers

LO4  Define the relevant range of production

LO5 Use the high-low method to predict future costs

LO6  Contrast the contribution margin income statement and the traditional income statement

LO7 Construct a traditional income statement

LO8 Construct a contribution margin income statement and calculate the contribution margin amount and ratio

Managerial accounting versus financial accounting LO1

In general, financial accounting is concerned with classifying, recording, and reporting financial transactions in a formal accounting system. Financial accounting is relatively uniform and prescribed by various regulatory bodies, such as the Securities and Exchange Commission, the Financial Accounting Standards Board, and the Public Company Accounting Oversight Board. Accountants, higher management, creditors, investors, and other external users are the primary users of financial accounting reports.

Managerial accounting is concerned with classifying, analyzing, and reporting data for internal decision making. Managerial accounting tools are used by management to plan, control, and evaluate business operations and to make internal business decisions. Managerial accounting tools and reports are not prescribed by a regulatory body. Instead, they are customized to meet the specific needs of the organization’s internal users. Managers and internal decision makers are the primary users of managerial accounting reports and tools.

Cost classification: Product or period LO2

Cost classification is the process of separating costs into different categories. The costs incurred by an organization can be classified in many different ways. An important cost classification in accounting is distinguishing product costs from period costs. In financial accounting, product costs are treated differently than period costs. As a general rule, product costs are capitalized as a part of the inventory asset account; whereas, period costs are expensed as incurred.

Product costs are all costs associated with purchasing or producing inventory for resale.

Period costs are all other costs not associated with purchasing or producing inventory for resale but are necessary for sustaining the organization, selling the inventory, and servicing customers.

Merchandising business: Product and period cost classifications

A merchandising business is a business entity that purchases finished inventory products from the business that manufactures the inventory with the intent to resale it and make a profit. A merchandiser makes a profit by marking up the inventory and selling it at a higher price to its customers. Retail stores such as Walmart and Target are examples of merchandising operations.

For a merchandiser, the costs of purchasing and holding the inventory are product costs . All other costs associated with sustaining the organization and selling the product are classified as period costs. Period costs include all non-inventory costs such as rent, utilities, wages, customer service, and advertising. While period costs are important to sustaining the organization, selling the inventory, and servicing customers, they are not included in the cost of the inventory.

To illustrate, assume that Kelly owns a small business selling seat cushions at sporting events. She buys the cushions from a wholesale company for $1 each and resales them to customers at the stadium for $5 each. Last year, she sold 10,500 seat cushions. She also paid $15,000 for rent on her booth and $9,600 for miscellaneous expenses. In this example, product costs are the cost of purchasing the inventory for resell. Product costs are calculated as $1 per cushion times 10,500 sold equals $10,500. Period costs are $15,000 rent plus $9,600 miscellaneous expenses for a total of $24,600. Period costs are the other non-inventory costs Kelly incurred to run her business.

Manufacturing business: Product and period cost classifications

A manufacturing business is a business entity that uses raw materials, parts, or other components to make a finished good. The finished goods are considered inventory in a manufacturing organization. A manufacturer makes a profit by selling the inventory for more than it costs them to produce the inventory for resell.

For a manufacturer, the costs associated with making the inventory are product costs. In manufacturing, the three categories of costs included in product costs are:

Direct materials —raw materials costs that can be easily and economically traced to the production of the product.

Direct labor —manufacturing labor costs that can be easily and economically traced to the production of the product.

Manufacturing overhead —all other indirect costs associated with manufacturing the product that are not direct material or direct labor.  All indirect—not direct material or direct labor—costs incurred in the manufacturing process are included in manufacturing overhead. Examples of manufacturing overhead costs include indirect materials, e.g. glue, nails, sandpaper; indirect labor, e.g. the production supervisor’s salary or quality control; and all other production costs incurred to run the production facility, e.g. rent, utilities, and taxes on the production facility.

All other costs associated with sustaining the organization and selling the product are classified as period costs. Period costs include all non-inventory costs such as the costs to provide administrative and selling services including rent, utilities, wages, customer service, and advertising. While period costs are important to sustaining the organization, selling the inventory, and servicing customers, they are not included in the cost of producing inventory.

Video Illustration 1-1 : Identifying product and period cost classifications for a manufacturer LO2

Cincy Chips manufactures microchips for small electronic devices. Classify the costs in Exhibit 1-1 as product costs or period costs . If the cost is a product cost, classify the cost as direct material (DM), direct labor (DL), or manufacturing overhead (OH).

The processes to solve the following scenario are demonstrated in Video Illustration 1-1 below.

Exhibit 1-1 Cost classification chart and video explanation

template to classify manufacturing costs for video

Check your understanding LO2

Cost behavior: Variable, fixed, and mixed LO3

Another important classification in managerial accounting is cost behavior. Cost behavior is how a cost reacts to changes in production, usage, or sales quantity. Cost behavior is classified as variable, fixed, or mixed.

Variable cost —the same cost per unit but the total cost depends on the quantity produced, used, or sold. Variable costs are variable in relation to some kind of activity driver .  An activity driver is an activity that causes the incurrence of the variable cost. Common activity drivers are units of sales, units of production, direct labor hours worked, or machine hours used.

Fixed cost —the same cost in total regardless of the quantity produced, used, or sold but the per-unit cost changes depending on the quantity produced, used, or sold.

Mixed cost —a cost that has both a variable and a fixed component. The variable component of a mixed cost must be variable in relationship to an activity driver .

An effective manager must consider cost behavior in order to predict future costs.

To illustrate cost behavior assume that Big Drink Company sells drinks in souvenir cups at an entertainment venue. Big Drink purchases the souvenir cups from a manufacturer for $1 each. Then they sell the cups for $10 filled with the customer’s choice of beverage.

The cost of the souvenir cups is a variable cost . The activity driver is the number of units sold. One units sold requires one cup. The cost per cup is always $1 per unit but the total cost incurred depends on how many drinks are sold. For example, if they sell 100 drinks, the total costs are $1 times 100 equals $100.  If they sell 500 drinks, the total costs are $1 times 500 equals $500. Per unit cost is always $1 but total cost changes depending on activity.

The cost of renting the booth at the entertainment venue is a fixed cost. Assume Big Drink pays $3,500 per month to rent a booth at the entertainment venue. The total cost for rent is always the same regardless of how many drinks they sell. However, the per-unit cost allocated to drinks sold changes depending on the quantity sold. For example, if Big Drink sells 100 drinks the rent amount allocated per-unit is $3,500 divided by 100 equals $35 per drink. If they sell 500 drinks, the rent amount allocated per-unit is $3,500 divided by 500 equals $7 per drink. The total cost is always $3,500 but the per unit cost changes depending on activity.

The cost charged for utilities is usually a mixed cost .  For example, Big Drink pays a minimum charge regardless of how much electricity is used. The minimum charge is fixed because it does not change depending on actual usage. Then they pay a charge per kilowatt-hour used. Kilowatt-hours used is the activity driver . The charge based on kilowatt-hour is variable since it depends on usage. The total electric bill has both a fixed and variable component so it is considered a mixed cost.

Video Illustration 1-2 : Cost classification and cost behavior LOs 2,3

Cincy Chips produces microchips for small electronic devices. They produced and sold 600 microchips in the current month.  Select financial data for Cincy Chips is provided in Exhibit 1-2. Determine the cost classifications and cost behavior for the below costs.

The processes to solve the following scenario are demonstrated in Video Illustration 1-2 below.

Exhibit 1-2 Cost classification/behavior chart and video  explanation

template to classify costs for video

Check your understanding LO3

Relevant range of production LO4

The relevant range of production is the range between a minimum and a maximum production activity where certain revenue and expense levels can be expected to occur. Revenue and expense amounts will likely increase or decrease when production activity falls outside of the relevant range. In a manufacturing environment, product and period costs can be estimated with a reasonable degree of accuracy within this relevant range of production. Cost estimates are less likely to be accurate when production falls outside of the relevant range.

For example, at Cincy Chips the manufacturing line can produce up to 1,000 units per day. Production in excess of 1,000 units per day would require the company to purchase a new manufacturing line which would significantly change the current cost estimates. Therefore, maximum production in the relevant range is set at 1,000 units.

Predicting mixed costs LO5

As mentioned in the preceding section, a mixed cost has both a variable and a fixed component. The variable component of a mixed cost must change in relation to an activity driver for the cost to be considered mixed. Accordingly, the first step to identify a mixed cost is to verify that the cost has a linear relationship to an activity driver. A linear relationship means that the cost increases or decreases as the activity driver increases or decreases.

A scatter plot chart is used to determine if a cost has a linear relationship to an activity driver. A scatter plot shows if a linear relationship exists between two sets of data – cost and activity driver in this case. If a linear relationship is shown on the scatter plot, then the cost is related to the activity driver. If a linear relationship is not shown on the scatter plot, then the cost is unrelated to the activity driver. A new scatter plot may be prepared to determine if the cost is related to a different activity driver. Alternatively, the cost may increase and decrease randomly, meaning it is not fixed, variable, or mixed. This is uncommon. Most recurring costs can be classified as fixed, variable, or mixed.

Before a scatter plot can be prepared, historical cost data must be collected. To illustrate, assume that maintenance costs are not fixed or variable. The manager believes the number of units produced is the activity driver for maintenance costs. Historical data for five months and the corresponding scatter plot is provided in Exhibit 1-3. Since the scatter plot clearly shows a linear relationship, maintenance cost is considered a mixed cost. The activity driver is the number of units produced.

Exhibit 1-3 Data for maintenance costs and corresponding scatter plot

cost classification essay

When a linear relationship exists, the formula for a linear regression line can be used to predict mixed costs. The linear regression line formula is given in Exhibit 1-4. This is also the cost formula used to calculate mixed costs.

Exhibit 1-4 Cost formula to calculate mixed costs

High-low method for creating mixed cost formulas

The high-low method is a simple and widely used method to estimate a mixed cost's variable and fixed components. The high-low method assumes that the difference in cost between the highest use observation and the lowest use observation is the variable portion of the cost. This method isolates the variable costs attributed to the difference in the activity driver.

Continuing the example from the preceding section, the high-low method can be used to estimate the fixed and variable components of maintenance cost since the cost was identified as mixed. It is important to note that when the relationship between the cost and the activity driver is not perfectly linear, the resulting cost formula is approximate.

The high-low method has four steps. These steps are outlined below and illustrated using the data in Exhibit 1-3.

Step 1 .  Find the difference between the high est use observation and low est use observation.

Step 2 . Calculate the variable cost per unit by dividing the difference in cost by the difference in activity. The difference between the highest use and lowest use is assumed to be the variable portion incurred by the difference in activity.

$128 different in cost / 360 difference in units = $0.356 (rounded) variable cost per unit.

Step 3 . For the highest or lowest observation (both will result in the same number), use the variable cost from step 2 to calculate the fixed component.

Lowest observation (May) . In May, they produced 1,460 units and $0.356 per unit is variable. Total variable costs are 1,460 x 0.356 = $520 (rounded). Subtract total variable costs from the total costs in May to get total fixed costs, $1,060 – $520 variable = $540 fixed.

Highest observation (April) . In April, they produced 1,100 units and $0.356 per unit is variable. Total variable costs are 1,100 x 0.356 = $392 (rounded). Subtract total variable costs from the total costs in April to get total fixed costs, $932 – $392 variable = $540 fixed.

Step 4 : Create the cost formula using the data from steps 2 and 3.

The cost formula to estimate maintenance costs is $540 fixed plus $0.356 variable costs per unit of production. Using the Y = a + bx cost formula introduced above, the cost formula for maintenance costs would be stated as  $540 + $0.356x, whereas x is the activity driver for the cost.

When the data is not perfectly linear, it is important to note that the cost formula produced by the high-low method only works on the highest and lowest observations since these are the data points used in the calculation. To illustrate, refer to the historical data for maintenance costs given in Exhibit 1-3. In January, 1,260 units were produced, and actual maintenance costs were $980. The high-low method cost formula would predict or estimate the cost for January as $540 fixed + ($0.356 x 1,260) = $989 (rounded).  Although the cost formula produces a number that is slightly higher than the actual cost of $980, the estimate is close enough to predict costs for internal managerial accounting purposes.

Video Illustration 1-3 : Using cost behavior to predict future costs LO5

Stephanie, the production manager, is collecting data for the November budget. Cost data are generated by the manager for each department. The production manager is responsible for estimating the costs for rent expense, cost of goods sold, and electricity. Data for September and October are provided in Exhibit 1-5. Complete the budget data for November.

The processes to solve the following scenario are demonstrated in Video Illustration 1-3 below.

Exhibit 1-5 Budgeting chart and video explanation

template to calculate change in cost related to change in quantity for video

High-low method

Step 1 – Difference     Step 2 – Variable cost      Step 3 – Fixed cost

Check your understanding LO5

Traditional versus contribution margin income statement LO6

An income statement also referred to as a profit and loss statement, reports an organization’s sales revenue and expenses for a specified period of time.  Sales revenue is the income received by a company from its sales of goods or the provision of services. Expenses are the cost of operations that a company incurs to generate revenue. Generally, the benefit of the cost is used in the same period in which the corresponding revenue is reported. The formula to compute net operating income , sometimes referred to as net income or net profit, is the organization’s revenues less its expenses. If an organization has more revenue, the resulting number is positive and represents net income or profit. If an organization has more expenses, the resulting number is negative and represents a net loss.

On a traditional income statement , costs or expenses are classified as product or period. On a contribution margin income statement , costs or expenses are classified as variable or fixed . Regardless of how the costs are classified, reported net operating income or loss is always the same on both income statement formats.

Traditional income statement LO7

A traditional income statement is primarily used for financial reporting purposes. A traditional income statement, reports an organization’s revenue and expenses for a specified period of time. On a traditional income statement, the organization’s expenses are presented based on product cost and period cost classifications.

Video Illustration 1-4 : Traditional income statement explained

An example of a traditional income statement is presented in Exhibit 1-6 and discussed in Video Illustration 1-4.

Exhibit 1-6 Traditional income statement and video explanation

graphic showing financial data presented on a traditional income statement

Check your understanding LO6, LO7

Video Illustration 1-5 : Preparing a traditional income statement LO7

Cincy Chips manufactures microchips for small electronic devices. They produced and sold 600 microchips in the current month.  Select financial data for Cincy Chips is provided in Exhibit 1-7. Prepare a traditional income statement .

The processes to solve the following scenario are demonstrated in Video Illustration 1-5 below.

Exhibit 1-7 Financial data, traditional income statement format, and video explanation

Financial data for video

Check your understanding LOs 6,7

Contribution margin income statement LO8

A contribution margin income statement is primarily used by internal users, usually management, for planning operations, controlling operations, and making decisions. Like a traditional income statement , the contribution margin income statement reports an organization’s revenue and expenses for a specified period of time.  The contribution margin income statement classifies expenses on the basis of cost behavior— variable versus fixed .

Video Illustration 1-6 : Contribution margin income statement explained LO8

An example of a contribution margin income statement is presented in Exhibit 1-8 and discussed in Video Illustration 1-6.

Exhibit 1-8 Contribution margin income statement and video explanation

graphic showing financial data in a contribution margin income statement format

Check your understanding LO8

Video Illustration 1-7 : Preparing a contribution margin income statement LO8

Cincy Chips produces microchips for small electronic devices. They produced and sold 600 microchips in the current month. Select financial data for Cincy Chips is provided in Exhibit 1-9. Prepare a contribution margin income statement .

The processes to solve the following scenario are demonstrated in Video Illustration 1-7 below.

Exhibit 1-9 Financial data, contribution margin income statement format, and video explanation

template to prepare a contribution margin income statement with video

Practice Video Problems

The chapter concepts are applied to comprehensive business scenarios in the below Practice Video Problems.

Practice Video Problem 1-1 : Product, period, fixed, and variable costs LOs 2, 3, 4

Crazy Candy’s Carpets makes whimsical and eccentric rugs. The relevant range of production is 10,000 to 14,000 units per month.  When she produces and sells 12,000 units the average costs per unit are as follows:

Financial date for practice video problem

Required 1 :  What is the total amount of product costs incurred to make 14,000 units?

Required 2 :  What is the total amount of period costs incurred to sell 14,000 units?

Required 3 :  What is the total amount of costs incurred to make and sell 11,000 units?

Click Practice Video Problem icon to link to video

Practice Video Problem 1-2 : Traditional income statement LO6

Magick Musicals sells custom guitars that they purchase from a local artist.  Magick purchases the guitars from the artist for $960 each, marks them up, and resells them for $2,200 each. Magick’s general and administrative costs are presented below.

In May, Magick purchased and sold 150 guitars.

financial data for practice video problem

Required: Prepare a traditional format income statement for May

template to prepare traditional income statement for the practice video problem

Practice Video Problem 1-3 : Contribution margin income statement LO7

Required: Prepare a contribution margin income statement for May. Show revenue and variable costs on both a total and a per-unit basis.

template to prepare a contribution margin income statement for practice video problem

Review Questions

Review questions reinforce the chapter content. 

Homework Questions

Homework questions can be used for additional practice or can be assigned in an academic setting.  Full feedback is not available online. Homework questions can be assigned, with auto-grading and export, to specific learning management platforms, e.g., Canvas, Blackboard, etc. Contact the author for details.   

Homework 1-1

Homework 1-2  

Homework 1-3  

Homework 1-4  

Homework 1-5  

Homework 1-6  

Homework 1-7  

Homework 1-8  

Homework 1-9  

Homework 1-10

Financial accounting is concerned with classifying, recording, and reporting financial transactions in a formal accounting system

Managerial accounting is concerned with classifying, analyzing, and reporting data for internal decision making.

Cost classification is the process of separating costs into different categories.

A merchandising business is a business entity that purchases finished inventory products from the business that manufactures the inventory with the intent to resale it and make a profit.  A merchandiser makes a profit by marking up the inventory and selling it at a higher price to its customers

A manufacturing business is a business entity that uses raw materials, parts, or other components to make a finished good.

Direct materials are raw materials costs that can be easily and economically traced to the production of the product.

Direct labor is manufacturing labor costs that can be easily and economically traced to the production of the product.

Manufacturing overhead are all other indirect costs associated with manufacturing the product that are not direct material or direct labor. 

Cost behavior is how a cost reacts to changes in production, usage, or sales quantity. Cost behavior is classified as variable, fixed, or mixed.

Variable costs are the same cost per unit but the total cost depends on the quantity produced, used, or sold.

An activity driver is an activity that causes the incurrence of the variable cost.  Common activity drivers are units of sales, units of production, direct labor hours worked, or machine hours used.

Fixed cost is the same cost in total regardless of the quantity produced, used, or sold but the per-unit cost changes depending on the quantity produced, used, or sold.

Mixed cost is a cost that has both a variable and a fixed component.

The relevant range of production is the range between a minimum and a maximum production activity where certain revenue and expense levels can be expected to occur.

A scatter plot shows if a linear relationship exists between two sets of data.

The high-low method is used to estimate the variable and fixed components of a mixed cost. The difference between the highest use observation and the lowest use observation is considered the variable portion of the cost.

An income statement also referred to as a profit and loss statement, reports an organization’s revenue and expenses for a specified period of time. 

Sales revenue is the income received by a company from its sales of goods or the provision of services.

An expense is a cost of operations that a company incurs to generate revenue. Generally, the benefit of the cost is used in the same period in which the corresponding revenue is reported.

The formula to compute net operating income, sometimes referred to as net income or net profit, is the organization's revenues less its expenses.

An income statement reports an organization’s sales revenue less its expenses (costs) for specified period of time. On a traditional income statement, costs are classified as product or period.

An income statement reports an organization’s sales revenue less its expenses (costs) for specified period of time. On a contribution margin income statement, costs are classified as variable or fixed.

Principles of Managerial Accounting Copyright © 2020 by Dr. Patricia Goedl is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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1.5: Cost Classifications Used for Planning and Control

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In this course, we will cover many cost classifications useful for planning and control. We will introduce the basic concepts behind these classifications but you will use them (and get in greater depth) in other chapters.

1. Fixed vs Variable Costs.

A fixed cost remains the same in total but changes per unit . Fixed costs examples include your monthly rent, salaried employees, straight-line depreciation as these amounts do not change based on volume. A variable cost remains the same per unit but changes in total. Variable cost examples include sales commissions, hourly workers, units-of-production method depreciation as these amounts will change based on total volume but the amount charged per unit does not change.

Thumbnail for the embedded element "Fixed and Variable Costs (Cost Accounting Tutorial #3)"

A YouTube element has been excluded from this version of the text. You can view it online here: http://pb.libretexts.org/ma/?p=34

2. Direct vs Indirect Costs.

A direct cost is an amount that can be traced to a specific department, process or job. Direct costs can be product costs like direct materials or direct labor or they can be period costs like an accountant’s salary would be traced to the accounting department. Indirect costs is an amount that cannot be traced to a specific department, process or job. These costs are typically allocated (or estimated) to the departments, processes or jobs using those items. Indirect costs can be product costs like overhead or period costs like an IT employee’s salary to the sales department. The sales department needs the services provided by IT and the IT employee’s time would be an indirect expense to the sales department.

Here is a video that provides a real world example of the differences between direct and indirect costs (focus on the first 2 minutes of the video):

Thumbnail for the embedded element "Direct & Indirect Costs"

3. Controllable vs Non-controllable Costs.

When evaluating the performance of an executive or manager under managerial accounting, it is helpful to recognize that some costs and expenses may be out of the control of that manager or executive. One example is the the manager’s salary. The manager has no control over his own salary and has no power to change or stay within the budget for the salary. Controllable costs are things the executive, manager, or department even can control or change. If the executive, manager or department cannot change or control the cost, it is an uncontrollable cost. An example of an uncontrollable cost would be an allocation of administrative expenses to each job or department.

Thumbnail for the embedded element "Controllable and Uncontrollable costs"

4. Differential Costs including Sunk and Opportunity Costs.

Differential Costs represent the difference between two alternatives. We will analyze what is relevant to our decision making including any opportunity costs. Opportunity costs are what you give up by choosing one alternative over another (think about what you are giving up by taking this course — what else could you be doing?). Sunk costs are not relevant for decision making as the cost cannot be recovered at a later date. Watch this video to get a better idea of these concepts.

Thumbnail for the embedded element "Differential Analysis - Concepts"

Contributors and Attributions

  • Fixed and Variable Costs (Managerial Accounting Tutorial #3) NotePirate NotePirate . Authored by : Note Pirate. Located at : https://youtu.be/RIYN2F6fW2Y . License : All Rights Reserved . License Terms : Standard YouTube License
  • Direct & Indirect Costs. Authored by : Andromedia Productions. Located at : https://youtu.be/NTEwMcXZ-0o . License : All Rights Reserved . License Terms : Standard YouTube License
  • Controllable and Uncontrollable costs . Authored by : Rutgers Accounting Web. Located at : https://youtu.be/HKJjov8i3RU . License : All Rights Reserved . License Terms : Standard YouTube License
  • Differential Analysis - Concepts. Authored by : Christy Lynch Chauvin. Located at : https://youtu.be/ZtATVI1Oeyo . License : Public Domain: No Known Copyright
  • Classification of Costs

Classification of Costs essentially means the grouping of costs according to their similar characteristics. Now, in costing there are a dozen ways to classify costs as per their nature, functions, traceability etc. Here we will be focussing on five such classifications. Let us learn this in detail.

Browse more Topics under Fundamentals Of Cost Accounting

  • Origin and Evolution of Cost Accounting
  • Meaning of Cost, costing and cost accounting
  • Importance of Cost Accounting
  • Financial Account vs Cost Account
  • Meaning of Management Accounting
  • Scope and Functions of Cost Accounting
  • Objectives of Cost Accounting
  • Advantages of Cost Accounting
  • Costing – an aid to management
  • Characteristics of an Ideal Costing System
  • Methods of Costing
  • Techniques of Costing
  • Cost Unit and Cost Centre
  • Cost Control and Cost Reduction
  • Elements of Cost
  • The format of the Cost Sheet

1] Classification by Nature

This is the analytical classification of costs. Let us divide as per their natures. So basically there are three broad categories as per this classification, namely Labor Cost, Materials Cost and Expenses. These heads make it easier to classify the costs in a cost sheet. They help ascertain the total cost and determine the cost of the work-in-progress.

  • Material Costs: Material costs are the costs of any materials we use in the production of goods. We divide these costs further. For example, let’s divide material costs into raw material costs, spare parts, costs of packaging material etc.
  • Labor Costs: Labor costs consists of the salary and wages paid to permanent and temporary employees in the pursuit of the manufacturing of the goods
  • Expenses: All other expenses associated with making and selling the goods or services.

2] Classification by Functions

This is the functional classification of costs. So the classification follows the pattern of basic managerial activities of the organization.

The grouping of costs is according to the broad divisions of functions such as production, administration, selling etc.

  • Production Costs: All costs concerned with actual manufacturing or construction of the goods
  • Commercial Costs: Total costs of the operation of an enterprise other than the manufacturing costs. It includes the admin costs, selling and distribution costs etc.

Learn more about  Meaning of Cost, Costing and Cost Accounting here  in detail

3] Classification by Traceability

This aspect one of the most important classification of costs, into direct costs and indirect costs. This classification is based on the degree of traceability to the final product of the firm.

  • Direct Costs: So these are the costs which are easily identified with a specific cost unit or cost centers. Some of the most basic examples are the materials used in the manufacturing of a product or the labor involved with the production process.
  • Indirect Costs: These costs are incurred for many purposes, i.e. between many cost centers or units. So we cannot easily identify them to one particular cost center. Take for example the rent of the building or the salary of the manager. We will not be able to accurately determine how to ascertain such costs to a particular cost unit.

4] Classification by Normality

This classification determines the costs as normal costs and abnormal costs. The norms of normal costs are the costs that usually occur at a given level of output, under the same set of conditions in which this level of output happens.

  • Normal Costs: This is a part of the cost of production and a part of the costing profit and loss. These are the costs that the firm incurs at the normal level of output in standard conditions.
  • Abnormal Costs: These costs are not normally incurred at a given level of output in conditions in which normal levels of output occur. These costs are charged to the profit and loss account, they are not a part of the cost of production.

Solved Question on Classification of Costs

Q: There was a loss in the factory due to a fire. This is a type of ____ cost

  • Normal cost
  • direct cost
  • abnormal cost

Ans: The correct answer is C. Abnormal costs are unusual and irregular costs which do not occur in normal levels of output under standard conditions.

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Classification Essay

Caleb S.

A Beginner’s Guide to Classification Essay + Examples, Topics, & Tips

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Published on: May 9, 2019

Last updated on: Nov 22, 2023

Classification Essay

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Have you ever tried organizing your wardrobe, and separating clothes by color or style to make your mornings smoother? Well, imagine doing the same with your thoughts and ideas.

This is what a classification essay does. It offers a way to understand a topic or idea by categorizing and classifying it.

This type of essay is assigned to evaluate students’ critical thinking skills and their ability to define and categorize things on a specific basis. 

In this guide, we will learn how to write a classification essay step by step. Plus, you will also get to read some good essay examples and interesting topics to write about. 

Let’s read on!

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What is a Classification Essay?

A classification essay can be defined as an essay that aims to arrange its subjects in categories based on their characteristics. In other words, it's about grouping things together that share common traits.

For example, imagine you're at a library, and each book is a unique idea. The classification essay is your way of creating distinct shelves and arranging those books in an orderly fashion. It is a mixture of expository and analytical essays, as it seeks to establish, discuss, and analyze a subject’s properties and characteristics. 

Moreover, it is also related to definition essays. Things are defined by their characteristics and categories to which they belong, and so the boundaries between a classification and definition essays are often blurred.

How to Write a Classification Essay?

Here are the steps you need to follow to write an excellent classification essay.

Following are the steps that should be taken to start an impressive classification essay:

Step 1: Choose a Topic

The first crucial step is selecting a topic that provides an opportunity for useful classification. Whether it's types of movies, learning styles, or modes of transportation, your topic sets the stage for a well-organized exploration.

Here's how to navigate this crucial first step:

  • Breadth and Relevance: Select for a topic that is broad enough to offer multiple categories but specific enough to maintain focus. For instance, instead of "sports," consider "types of outdoor recreational activities."
  • Consider Your Audience: Think about who will be reading your essay. Tailor your topic to their interests and knowledge level. A topic that resonates with your audience ensures that your classifications have a meaningful impact.
  • Room for Exploration: Look for a topic with room for exploration. A good classification essay not only categorizes but also highlights nuances within each category. This adds depth to your writing and keeps your readers engaged.

Step 2: Conduct Research 

Now that you've chosen a compelling topic, it's time to delve into the world of research. Gather information to ensure you have a comprehensive understanding of the categories you plan to explore. With good research, you will have solid foundations for your classifications.

Here's how to gather the necessary information to enrich your classification essay:

  • Consult Reliable Sources: Start by consulting reputable sources such as books, academic journals, and credible websites. The information you gather should be accurate and up-to-date.
  • Diversify Your Sources: Get a well-rounded understanding by exploring a variety of sources. The more perspectives you study, the more comprehensive your classifications will be.
  • Take Detailed Notes: As you conduct your research, take detailed notes on relevant information, examples, and any noteworthy details. This will help in outlining and drafting your essay later.
  • Stay Organized: Keep your research organized. A systematic approach will save you time when you start outlining your essay.

Step 3: Brainstorm Ideas About Your Subject

To start writing a classification essay, it is important to first decide on a clear and specific criteria for classification. With credible information in hand, let your creativity flow. 

Jot down all the possible categories related to your chosen topic. This brainstorming phase is about exploring various angles and finding the most meaningful ways to categorize your subject matter.

This essay’s purpose is to define and discriminate between subjects, so make sure that the categories are well-defined and clear. 

Step 4: Develop a Thesis Statement

A thesis statement establishes the writer’s stance on the topic and their central argument. It is important to draft a strong thesis statement for an effective and persuasive classification essay. 

Once you’ve researched and established your categories, it's time to distill your focus into a concise thesis statement. Here’s what to keep in mind:

  • Your thesis should clearly state the main categories you will explore in your essay. Avoid vague or overly broad statements. The reader should have a precise understanding of what to expect.
  • The thesis statement is the central idea around which your entire essay revolves. It should convey the main point or purpose of your classification. 
  • It should also provide a roadmap, indicating the organization of your upcoming arguments.

Step 5: Draft an Outline

Now that you have a well-crafted thesis statement, it's time to organize your thoughts and create a roadmap for your classification essay. A classification essay outline should include these points:

Step 6: Write Your First Draft

Once you have the necessary information and an organized plan, it is time to start writing your classification essay. To draft an effective and flawless essay, follow the writing steps given below:

  • Write an Essay Introduction

The introduction is the first part of the essay. In this part, you need to catch the reader’s attention and introduce them to your topic. To make your introduction appealing,

  • Start with a catchy hook statement. A hook statement is the opening line of the introductory paragraph that attempts to draw the reader’s attention. 
  • Provide sufficient background and context for your topic.
  • Close your introduction with a strong thesis statement that highlights your central point. 
  • Draft the Body Paragraphs

The body section will contain three or more paragraphs depending on your arguments. The body paragraphs follow and justify the thesis statement made earlier in the introduction. Here’s how to write your body paragraphs:

  • Start each body paragraph with a topic sentence that presents the main point of that paragraph.
  • Provide examples, arguments, and relevant information in each paragraph to establish your argument. 
  • Provide a detailed analysis of your subject to justify your categorizations.
  • Connect body paragraphs to each other through transition words and phrases. This is important for maintaining a logical flow.
  • Write a Strong Conclusion

The conclusion is the last paragraph, where you put together all the arguments made in the body paragraphs. Follow these tips to write a good conclusion:

  • Summarize the main categories without introducing new information.
  • Reiterate the significance of your classifications and their impact on understanding the topic.
  • End with a memorable closing statement that leaves a lasting impression.

Step 7: Revise, Edit, & Improve Your Draft

Congratulations on completing your first draft! However, your work is not done just yet. Your first draft could be full of mistakes and weaknesses, so you need to elevate it through the revision, editing, and improvement process. Here’s what you should do to ensure that your final draft is perfect:

  • Review the Overall Structure: Ensure that your introduction sets the stage effectively, each body paragraph is coherent, and the conclusion ties everything together without introducing new information.
  • Check for Clarity and Consistency: See that your language is clear and your ideas are presented logically. Check for consistency in tone and style throughout.
  • Refine Thesis Statement: Revisit your thesis statement. Does it accurately reflect the content of your essay? Make adjustments if needed to ensure it aligns with the final draft.
  • Trim Unnecessary Details: Trim any redundant or unnecessary details. Keep your writing concise and focused on the defining characteristics of each category.
  • Proofread for Errors: Thoroughly proofread your essay for grammatical, spelling, and punctuation errors. A polished essay enhances your credibility as a writer.
  • Get Feedback: Consider seeking feedback from peers, professors, or writing professionals. Fresh perspectives can identify areas for improvement that you might have overlooked.
  • Final Polish: Give your essay a final polish. Ensure that it aligns with your original vision and effectively communicates your ideas.

Classification Essay Examples 

Before starting the writing process, it is better to look at some of the classification essay examples. This way, you will get a better understanding of how these essays are written. 

Here are some classification essay examples to help you get started.

Classification Essay Sample

Division and Classification Essay Example

Exemplification and Classification Essay Example

Types of Friends Classification Essay

Classification Essay on Relationships

Classification Essay Topics

Choosing the right topic is the cornerstone of creating a captivating classification essay. Here's a short but diverse list of classification essay ideas to spark your imagination.

  • Types of Social Media Users
  • Genres of Music
  • Learning Styles
  • Forms of Government
  • Types of Movie Endings
  • Modes of Transportation
  • Gaming Genres
  • Personality Types in a Workplace
  • Human Responses to Stress
  • Various Kinds of Study Habits

Need more ideas? Head to our classification essay topics blog and get a list of interesting ideas to choose from!

Tips for Writing an Effective Classification Essay

Mastering the art of classification essays requires more than just following a set of steps. Consider these tips to enhance the quality and impact of your classification essays:

  • Choose a Niche Topic: Opt for a topic that allows for meaningful categorization. A focused and specific subject ensures a more in-depth exploration of categories.
  • Provide Clear Criteria: Clearly define the criteria used to categorize items. Whether it's characteristics, functions, or behaviors, explicit criteria add depth and clarity to your classifications.
  • Ensure Balanced Categories: Strive for balance in the depth and coverage of each category. Avoid spending disproportionate time on one category, as it can disrupt the overall equilibrium of your essay.
  • Use Consistent Characteristics: Maintain consistency in the characteristics you use to define each category. This ensures a coherent and logical progression throughout your essay.
  • Think About Your Audience: Consider your audience's interests and knowledge level. Tailor your classifications to resonate with your readers, making the essay more engaging and relevant to them.
  • Include Vivid Examples: Illustrate each category with vivid and relevant examples. Concrete examples provide a clearer understanding and make your classifications more compelling.
  • Stay Objective: Maintain objectivity in your classifications. Avoid biases and ensure that your categories are based on observable and verifiable characteristics.
  • Read Widely: Expose yourself to a variety of classification essays. Knowing other points of views can provide inspiration, insights, and a deeper understanding of effective categorization.

In conclusion,

A classification essay is a unique and interesting kind of writing with a few special requirements. Having read its definition and writing steps above, you now know what they are: It requires you to categorize your subject based on its features and argue for its validity. 

Following the steps and tips above will allow you to craft an A-worthy classification essay. The key to success comes down to pre-writing preparation and meticulous editing and revisions . Start early, plan your essay, figure out the categories, write, and rewrite until you’re satisfied.

Still need expert help? No worries! We fully understand your writing challenges. 

At MyPerfectWords.com, you can get assistance from professional writers for any type of essay, regardless of your topic. Our experienced and expert writers write amazing essays for you according to your needs and requirements. Hire our online essay writing service today!

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Module 1: Nature of Managerial Accounting

Introduction to classifying costs, what you will learn to do: assign costs to common cost categories.

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Managerial accounting deals with a wide variety of issues, including revenue forecasts, budgeting, capital decision making, and other non-cost issues, as you will see in this course. As you might expect, cost accounting specifically focuses on costs.

Costs are the result of paying cash or committing to pay cash in the future in order to earn revenue. Costs may be accumulated for a product, sales territory, department, or activity. It is critical to analyze costs because controlling them directly impacts profitability. Costs are also used to determine the selling prices of products, and they are monitored over time to evaluate progress and discover irregularities.

Cost accounting covers four broad categories: accumulating costs, analyzing costs, evaluating performance, and comparing alternatives.

Accumulating costs

Costs must be determined and recorded accurately, systematically, and on a timely basis. Unless cost information is correct and reliable, it is not very useful to managers who depend on it to make effective plans and informed decisions. Job order costing and process costing are two methods of systematically accumulating costs on manufactured products. Activity-based costing is a system that is combined with the other two methods to identify and measure costs more specifically.

Analyzing costs

Not all costs are created equal. Some are unavoidable; others are somewhat controllable. Separating them allows managers to focus on controllable costs that should be monitored in order to contain or lower them. Costs may also be used to mathematically determine sales requirements to achieve desired levels of volume and profitability. Break-even analysis and other cost relationships, as well as variable costing, will address these issues.

Evaluating performance

Planning involves looking into the future and estimating what a business’s financial activities will look like. This process is called budgeting , and it projects what sales, costs, production, cash flows, etc. will be at a future point in time. Controlling methods such as variance analysis compare expected outcomes to actual results and analyze overall progress in meeting goals.

Comparing alternatives

Managerial decision-making includes choosing one option over others, such as whether to make or buy a component part or whether to continue manufacturing a product. For instance, capital investment analysis involves evaluating proposed investments in property, plant, or equipment that a company will use in its operations.

Cost is a financial measure of the resources used or given up to achieve a stated purpose. Product costs are the costs of making a product, such as an automobile; the cost of making and serving a meal in a restaurant; or the cost of teaching a class in a university. A company assigns product costs to units produced. Often, the object to which costs are being assigned is called the cost object .

Manufacturing companies use the most complex product costing methods. To ensure that you understand how and why product costing is done in manufacturing companies, we use many manufacturing company examples. However, since many of you could have careers in service or merchandising companies, we also use non-manufacturing examples.

In this section, we’ll look at four different ways to classify costs that will help us with the four categories above:

  • Product and Period
  • Direct and Indirect
  • Prime and Conversion
  • Fixed and Variable

You’ll find even more ways to classify costs as you learn to plan, direct, and control operations. For instance, some costs are controllable and some are non-controllable. Rent, in the short term, is non-controllable. Advertising is controllable, but reducing the marketing budget could have long-term negative ramifications. You’ll also run into terms such as discretionary and non-discretionary, differential costs, opportunity costs, and more. For now, however, we’ll focus on the classifications listed above.

When you are done with this section, you will be able to:

  • Differentiate between period and product costs
  • Differentiate between direct and indirect costs
  • Differentiate between prime and conversion costs
  • Differentiate between fixed and variable costs

Learning Activities

The learning activities for this section include the following:

  • Reading: Period and Product Costs
  • Self Check: Period and Product Costs
  • Reading: Direct and Indirect Costs
  • Self Check: Direct and Indirect Costs
  • Reading: Prime and Conversion Costs
  • Self Check: Prime and Conversion Costs
  • Reading: Fixed and Variable Costs
  • Self Check: Fixed and Variable Costs
  • Introduction to Classifying Costs. Authored by : Joseph Cooke. Provided by : Lumen Learning. License : CC BY: Attribution
  • Principles of Managerial Accounting. Authored by : Christine Jonick. Located at : https://ung.edu/university-press/books/managerial-accounting.php . License : CC BY-SA: Attribution-ShareAlike
  • Building under construction. Provided by : Unsplash. Located at : https://unsplash.com/photos/PlBsJ5MybGc . License : CC0: No Rights Reserved

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A classification essay is a type of academic essay that categorizes a topic into distinct groups based on shared characteristics or criteria. The writer's purpose is to create a clear organization of information. Classification should be logical, making it easier for readers to remember the information being presented.

Let us guess: your professor asked you to write a classification essay. But they didn't explain how to even write one, did they? They often drop students like that as a part of self-learning. That's exactly why you're here! Writing a classification essay requires research. And making sure you've got enough information, you must double check what you've already gathered. Besides, classifying may sound simple, but it takes discipline and logical thinking. Putting thoughts into words and all that… What a task! But we heard a little rumor that those who continue reading would master classification papers. It's time for you to see if this rumor is true!  

What Is a Classification Essay: Definition

Classification essay doesn’t want to hide its essence, considering its name. But the primary goal of this type of article is to classify. Now, what you want to rank is up to you or your professor. Your main goal is to select topics and later put them into categories. The primary purpose of this type of essay is to show your skills in categorisation and generalization. We can take food as a good and tasty example. For instance, apples and oranges belong to the fruit category, while cucumbers will definitely be vegetables. As for avocado, you have to do the research and classify this type of food. Nevertheless, you’ll definitely need to write one of those essays during your college. So to master academic and classification writing, keep reading!  

How to Write a Classification Essay

We will start by teaching you how to write a classification essay. In this case, preparation is our little saving grace. So before you begin the actual writing, typing, or scribbling, it’s a good idea to think about the overall essence of your article. For starters, here are several valuable tips worth remembering:

  • Select a type of organization (you can use tables, documents, or anything that will help you in organizing your work).
  • Choose your categories for classification.
  • Make sure that each category is distinct and clear.
  • Include different examples for visualization.

These several steps will be handy for writing a thesis and starting your introduction. Buy essay papers online once you want good results with as little time spent as possible.

Developing an Effective Classification Essay Thesis Statement

Like with other articles, the classification essay thesis is one of the most vital parts of your work. A good thing worth keeping in mind is that your thesis is the last statement of your introduction. It also determines whether your audience will continue reading your article. Here are several things you should follow to write a good thesis:

  • Summarize your work.
  • Identify your main topic, objective, or goal of your essay.
  • Above all, make readers understand what point you’re making and what your paper is gonna be about.
  • Mention the categories you have chosen.

If you can nail our list given above, congratulations, you’ve got yourself an outstanding thesis.

Classification Essay Outline

Creating a classification essay outline is one of the easiest ways to approach an excellent classification paper. It’s true that it requires a lot of research and remembering. You will not only have to write about a single subject but group topics into categories. In order to do it correctly and understandably for the reader, it’s best if you use an outline. First and foremost, your essay should follow a traditional five paragraph essay format structure. It should have a minimum of three paragraphs. But typically, professors prefer around five. So your introduction must initially include an introduction, several body paragraphs depending on the length of your article, and a conclusion. In your body paragraphs outline, it’s a good idea to describe the groups you will include in your article. So your first paragraph will group fruits according to their color, while the second one can use nutrition for a classification. This will help you to remember your points before writing.  

How to Start a Classification Essay: Introduction

Classification essay introduction is very similar to any other introduction you have probably written. You should never forget that you are writing for an audience. Doesn’t really matter if your reader is your professor or some person online. The rules of good writing apply to any kind of paper. The first thing worth doing is introducing your overall concept. There is no need to give all the information at once. Just start with something more general and narrow it down later to a thesis we’ve talked about. Make sure that you also include the relevant information. Using our previous metaphor, if you’re talking about fruits, maybe mentioning vegetables will not be a good idea. Besides, staying on one topic will help you to write more clearly. And that’s our final requirement for your introduction.  

Body Paragraphs of a Classification Essay

Classification essay's main body commonly has around 1-3 paragraphs. But don't forget to ask your professor about the length. The important thing to remember is that you are classifying items in your work. In order to achieve precise and successful organization, your body paragraphs must be concise. Each body paragraph should focus on a certain group. You're not making mashed potatoes. So stacking all of your ideas in one section would create a mess. Keep it simple in terms of structure:  

  • Paragraph 1 — fruits organized by their color
  • Paragraph 2 — fruits arranged by expert location
  • Paragraph 3 — fruits ordered by size or shape

A simple and understandable organization will make your writing sharp. And your readers will definitely say thank you!

Classification Essay Conclusion

A classification essay conclusion is, just like always, crème de la crème of any article. At this point, your reader knows everything you were telling them. They know all your data, issues, and ideas. Thus, quickly summarizing what they’ve read in your body paragraphs will help a lot. But the last thing to do is organize your conclusion while leaving an impression. Now, their impressions can be different. However, your readers must think about your work for at least some time. So your conclusion must end with something intriguing like the possible future of your topic or piece of mind for the readers. Just don’t include any new information, and you’ll do fantastically!  

Classification Essay Writing: Useful Tips

Even with our help, classification essay writing is challenging. So we prepared for you several good tips that will help you improve and ease your academic life. Check them out:  

  • Define the purpose of the article before you start writing.
  • Avoid popular and often used topics.
  • Write down a number of topics before picking one. (We have a list of classification essay topics at your disposal.)
  • Choose a subject that will be personally interesting for you.
  • Remember that you are also writing for someone else who might not know everything about your topic.
  • Edit and proofread your work.
  • Take a break from writing once in a while and come back with a fresh mind and new look.
  • Don’t try writing about everything simultaneously. Instead, focus on one category and lead with it.

With these steps, we can definitely say that you’re ready.

Classification Essay Examples

How could we leave you without classification essay samples? You’re right; we couldn’t. Check out this example. Keep in mind that our examples always have characteristics that we talked about. So you can read the sample and return back for this article or do some revision. It will help you a lot. What are you waiting for? You can find the example right here. Or simply buy essay for college to avoid any hard work this evening. 

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Classification Essay: Bottom Line

Who knew that  writing a classification essay  wasn’t that hard? We did, and now you know that, too. You have everything it takes to create an excellent paper. You know that:  

  • Your thesis is the most essential part of the essay.
  • The introduction must contain general information on the subject.
  • Body paragraphs must be carefully organized.
  • A conclusion should leave an impression without including new information.

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But if you’re still looking for proficient help, our academic writing services got you covered. Our writers do excellent research before writing a paper and deliver high-quality results. We are also proud of our timely delivery of the papers.

FAQ about Classification Essays

1. what is the purpose of a classification essay.

The purpose of a classification essay is to organize and classify. In the beginning, you have several unique items. They indeed have some things in common. So your job is to identify in what categories they fit best. After doing the research and careful learning, you must put everything you have gathered into words. But still, keep in mind that the second purpose is to make your essay and classification clear to the reader.

2. How long is a classification essay?

There’s no right or wrong answer when it comes to classification essay length. Everything will depend on the guidelines. Usually, such articles are 3 to 5 paragraphs long. Their minimum is always an introduction, one body paragraph, and conclusion. However, professors definitely enjoy 5 paragraphs as a standard length. But you always need to remember that the essay should be long enough to provide necessary information for the reader. Or it must be short enough not to drag it out.

3. What is the difference between a division and classification essay?

Division and classification essays are only slightly different. The items you choose for classification essays must belong to strict and certain categories. They cannot overlap or belong to two different groups. On the other hand, division essays allow the subjects to move from one group to another. They might be divided into different groups or categories and thus overlap.

4. What are different types of classification?

There are several types of classification. Depending on the particular topic, you can choose a specific type that fits the best. Here’s what you can choose from:

  • Spatial classification (location, place and so on).
  • Chronological (you must take time and dates into consideration).
  • Classification by attributes (qualitative).
  • Classification by size (quantitative with numbers and statistics).

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Classification is a method of developing an essay by arranging people, objects, or ideas with shared characteristics into particular classes or groups. After you have settled on a topic for a classification essay * and explored it through various prewriting strategies, you should be ready to attempt a first draft . Here is how to develop and organize a five-paragraph classification essay .

Introductory Paragraph

In your introduction , clearly identify your subject — in this case, the group you are classifying. If you have narrowed your subject in any way (for example, types of bad drivers, rock guitarists, or annoying moviegoers), make this clear from the start.

You may also want to provide some specific descriptive or informative details to attract the interest of your readers and suggest the purpose of the essay .

Finally, include a thesis sentence (usually at the end of the introduction) that briefly identifies the main types or approaches that you're about to examine. 

Intro Paragraph Example: Baseball Fans

Here's an example of a short but effective introductory paragraph to a classification essay:

It's a warm evening in July, and all across the country Americans are gathering to watch a game of professional baseball. Armed with hot dogs and cold drinks, they stroll to their seats, some in grand stadiums, others in cozy minor-league parks. But no matter where the game is played, you will find the same three types of baseball fan: the Party Rooter, the Sunshine Supporter, and the Diehard Fan.

Notice how this introduction creates certain expectations. The specific details provide a setting (a ballpark on "a warm evening in July") in which we expect to see the various fans described. In addition, the labels assigned to these fans (the Party Rooter , the Sunshine Supporter , and the Diehard Fan ) lead us to expect descriptions of each type in the order they're given. A good writer will go on to fulfill these expectations in the body of the essay.

Body Paragraphs

Begin each body paragraph with a topic sentence that identifies a particular type of approach. Then  illustrate each type with specific details.

Arrange your body paragraphs in whatever order strikes you as clear and logical — say, from the least effective approach to the most effective, or from the most common type to the least familiar (or the other way around). Just make sure that the order of your body paragraphs matches the arrangement promised in your thesis sentence.

Body Paragraphs Example: Types of Fans

Here, in the body of the essay on baseball fans, you can see that the writer has fulfilled the expectations set up in the introduction. (In each body paragraph, the topic sentence is in italics.)

The Party Rooter goes to games for the hot dogs, the gimmicks, the giveaways, and the companionship; he's not really that interested in the ballgame itself. The Party Rooter is the sort of fan who shows up on Buck-a-Brew Night, often with a gang of fellow partiers. He cracks jokes, hurls peanuts at the team mascot, applauds the exploding scoreboard, blasts an electronic horn whenever he pleases—and occasionally nudges a companion and asks, "Hey, who's winning?" The Party Rooter often wanders out of the park in the sixth or seventh inning to continue his celebrations in the car on the way home. The Sunshine Supporter, usually a more common type than the Party Rooter, goes to the park to cheer on a winning team and bask in its glory. When the home side is on a winning streak and still in contention for a playoff spot, the stadium will be packed with this sort of fan. As long as her team is winning, the Sunshine Supporter will be roaring at every play, waving her pennant and shouting out the names of her heroes. However, as the name implies, the Sunshine Supporter is a fickle fan, and her cheers quickly turn to boos when a hero strikes out or drops a line drive. She will stay around until the end of the game to celebrate a victory, but should her team fall a few runs behind, she's likely to slip out to the parking lot during the seventh-inning stretch.​ Diehard Fans are also strong supporters of the local team, but they go to the park to watch good baseball, not just to root for a winner.  More attentive to the game than other fans, Diehards will study the stance of a power hitter, note the finesse of a quick fielder, and anticipate the strategy of a pitcher who has fallen behind in the count. While the Party Rooter is chugging a beer or dropping wisecracks, Diehards may be filling in a scorecard or commenting on a player's RBI tally over the past few months. And when a Sunshine Supporter boos an opposing player for tagging out a local hero, Diehards may be quietly applauding the expert moves of this "enemy" infielder. No matter what the score is, Diehard Fans remain in their seats until the last batter is out, and they may still be talking about the game long after it's over.​

Comparisons Ensure Cohesion

Notice how the writer uses comparisons to ensure cohesion in the body of the essay. The topic sentence in both the second and third paragraphs refers to the preceding paragraph. Likewise, in the third body paragraph, the writer draws explicit contrasts between the Diehards and the other two types of baseball fans.

Such comparisons not only provide smooth transitions from one paragraph to the next but also reveal the sympathies of the writer. He begins with the type of fan he likes the least and ends with the one he most admires. We now expect the writer to justify his attitudes in the conclusion.

Concluding Paragraph

The concluding paragraph gives you an opportunity to draw together the various types and approaches you have been examining in the body of the essay. You may choose to offer a final brief comment on each one, summarizing its value or its limitations. Or you may want to recommend one approach over the others and explain why. In any case, make sure that your conclusion clearly emphasizes the purpose of your classification.

Concluding Paragraph: Only the Diehard Fans Remain

In the concluding paragraph to "Baseball Fans," consider whether the author has been successful in his effort to tie his observations together.

Professional baseball would have trouble surviving without all three types of fans. The Party Rooters provide much of the money that owners need to hire talented players. The Sunshine Supporters bring a stadium to life and help boost the morale of the home team. But only the Diehard Fans maintain their support all season long, year in and year out. By late September in most ballparks, enduring chilly winds, rain delays, and sometimes humiliating losses, only the Diehards remain.

Connecting the Conclusion to the Introduction

Notice how the writer hooks his conclusion back to the introduction by contrasting the chilly night in September with the warm evening in July. Connections such as this help to unify an essay and give it a sense of completeness.

As you develop and organize your draft , experiment with various strategies, but keep this basic format in mind: an introduction that identifies your subject and the different types of approaches; three (or more) body paragraphs that rely on specific details to describe or illustrate the types; and a conclusion that draws your points together and makes the overall purpose of the classification clear.

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How to Write a Classification Essay?

17 July, 2020

8 minutes read

Author:  Elizabeth Brown

Classification essay is comparable to painting creation - an artist works on a specific structure that holds the picture’s elements together and glues different layers to create a powerful visual effect. The same principle applies to a writing piece, in which the central role is devoted to getting things in order. In this article, we’ll discuss the main features and components of a great classification essay and share some tips and tricks on how to take your piece of writing to the next level.

Classification Essay

Classification essay definition

We bet the first thing you want to know concerning the topic is what is a classification essay? This is the task which you’ll most likely deal with at some point in your student life. The essence of this assignment is related to categorization and generalization. Remember these two words because they form the true meaning of classification essay. Also, division and classification are those elements of this essay type which highly correlate and have equal importance for essay creation. Therefore, the main task here is to organize or sort things into categories.

Classification Essay Writing

How to write a classification essay 

Careful attention to planning marks the indication of quality in terms of classification essay. At this point, the main task is to learn how to structure the paper. The length of an article may vary, but the most frequently used “five paragraphs” method is typically applied for classification writing. What does this structure suggest? It has to do with a logical division of your essay into blocks and categories, every one of which should clarify a particular issue.

The first and one of the essential paragraphs is the introductory one. It’s an opening which illuminates the matter you’re going to discuss and the subject you’ll categorize. Besides, you can outline the purpose of your classification essay to readers to bring more clarity into the discussion. Answer the question of why you are categorizing the chosen items and what criteria you use for each of them. Then, you’ll need to close the introduction paragraph with a thesis. It will briefly sum up the objective of your classification and division essay, and identify the categories which you’ll be using for a paper.

The second part is the essay body. Here, a couple of paragraphs are applicable, preferably 3 and more. The most critical nuance you should remember while composing a body is that each paragraph will deal with a separate category. The best way to organize the central part of your division essay is to explain the criteria for each category and desirably, discuss strengths and weaknesses. More importantly, you should include examples that’ll back up your statements with a piece of evidence. Notably, there should be an equal amount of examples for every category to spread the evidence evenly. If your paragraphs in the main body are lengthy, you can also divide them into shorter ones to create a smooth transition between the blocks of text and improve readability.

The final paragraph of your classification essay is a conclusion. The closing statements will sum up the different categories highlighted in the body. Also, it’s advisable to restate each category and advise readers on the subject matter. However, if you choose to recommend this or that topic over the others, don’t forget to state the reason for your stance. This way, readers will take into account your well-grounded explanation, which is deprived of subjectivity, and make relevant conclusions for themselves.

Classification Essay Structure

Apart from the basic understanding of classification essay structure , you should also get prepared for the writing process. For many, implementing theory on practice is even more challenging than the stage of composing an essay. Nonetheless, with enough patience and endurance, this process is really not so bad after all. So, what steps do you need to make in order to prepare well for classification paper writing?

First things first, planning is everything when it comes to the assignment that implies classification. Without a clear and coherent plan, there’s no way you can write a good paper. Therefore, make sure that you have a robust scheme before writing your essay. For this, proceed with the following planning steps:

  • Generate Ideas. Evidently, your essay won’t write itself. If your professor has not assigned you a specific topic, it’s time to do some brainstorming. Remember – you need to choose a group of people, things, or ideas that can be easily divided into categories and then compared.
  • Choose Your Classification Method. Aim at one principle for classification for each category you describe. For example, if you write about people, you can categorize them by age, gender, appearance, or other factors. This will help you better structure your essay and make it look more organized in the eyes of readers.
  • Create a Thesis Statement. As previously mentioned, the thesis statement is the element which closes the introduction of your classification essay. It should include such information as the subject matter, the categories, and the criteria used to classify each category. Besides, you can note down the purpose of your division into these categories.

Preparation for Classification Essay

Classification essay outline

The outline is a general description or plan that schematically displays the main points of your essay. The main point of an outline is to help you see the structure of your essay and use it as a useful guide for writing. Usually, a typical outline describes the essence of each point in one sentence. Also, bullet points are not uncommon, so you can use them to arrange a plan the way you feel is the most appropriate.

Classification essay topics

There is a plethora of themes and subjects for division classification essays to choose from, but most of them are hard to think of straight away. That’s why we’ve collected the list of the top used classification topics for you to facilitate the process of generating ideas or searching for ones elsewhere.

  • The most popular devices students use nowadays
  • Colors and their meaning in the paintings of Frida Kahlo
  • The evolution of rock-music types
  • Standard methods students use to prepare for exams
  • Public speakers that have moved the world  
  • Unique factors to determine a successful relationship  
  • How to improve child-parent relationships
  • Main motives to start a political career
  • Learning techniques for college students
  • Types of TV comedy shows
  • Traveling destinations
  • The main types of mobile applications
  • Communication possibilities online
  • Strategies for making decisions in business
  • Leadership and leader types
  • Conflicts at the job and ways to cope with them
  • The motivation for doing sports
  • Methods to reduce stress

No matter which theme you choose for your classification essay and what techniques you implement to make them elaborated, remember always to keep the structure in mind. The first step to writing this type of assignment is not just sitting and jotting down detached ideas, but planning out clear statements which can later be transmitted on paper. Hopefully, our advice will help you on the way to writing an excellent classification essay which your professor will mark with an A+ grade.

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4.6: Classification Essays

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Writing a Classification Essay

Start with an engaging opening that will adequately introduce the general topic that you will be dividing into smaller subcategories. Your thesis should come at the end of your introduction. It should include the topic, your subtopics, and the reason you are choosing to break down the topic in the way that you are. Identifying the reason or rationale for breaking down the topic in a particular way builds the argument that will become your thesis. Use the following classification equation to craft your thesis statement:

\[\text{topic} + \text{subtopics} + \text{rationale for the subtopics} = \text{thesis} \ldotp\]

The organizing strategy of a classification essay is dictated by the initial topic and the subsequent subtopics. Each body paragraph is dedicated to fully illustrating each of the subtopics. In a way, coming up with a strong topic pays double rewards in a classification essay. Not only do you have a good topic, but you also have a solid organizational structure to use as your outline while drafting. Be sure you use strong details and explanations for each subcategory paragraph that help explain and support your thesis. Also, be sure to give examples to illustrate your points.Finally, write a conclusion that links all the subgroups together again. The conclusion should successfully wrap up your essay by connecting it to your topic initially discussed in the introduction.

Sample Classification Essay

Types of Higher Education Programs

Today’s students have many choices when it comes to pursuing a degree: four-year programs, two-year programs, large or small classroom settings, and even daytime or evening classes. With all the different options to consider, potential students should learn about the different types of colleges, so they can find a school that best fits their personality, budget, and educational goals.

One type of higher education program for students to consider is a liberal arts college. These schools tend to be small in size and offer a range of undergraduate degrees in subjects like English, history, psychology, and education. Students may choose a liberal arts college if they want a more intimate classroom setting rather than large lecture-style classes. Students may also consider a liberal arts college if they want to gain knowledge from a variety of disciplines, rather than focus on a single area of study. Many liberal arts schools are privately owned, and some have religious affiliations. Liberal arts schools can come with a hefty price tag, and their high cost presents an obstacle for students on a tight budget; moreover, while some students might appreciate a liberal arts school’s intimate atmosphere, others might encounter a lack of diversity in the student body. Still, students seeking a well-rounded education in the humanities will find liberal arts colleges to be one option.

Universities, another type of higher education program, offer both undergraduate and graduate degrees. Usually universities are larger than colleges and can accommodate tens of thousands of students in many different majors and areas of study. A large student body means that class sizes are often larger, and some classes may be taught by graduate students rather than professors. Students will feel at home at a university if they want a focused academic program and state-of-the-art research facilities. While some universities are private, many are public, which means they receive funding from the government, so tuition is more affordable, and some even offer discounted in-state tuition for state residents. Also, universities attract many international students, so those looking for a variety of campus cultural groups and clubs will appreciate a greater sense of diversity among the student body. Universities can be overwhelming for some, but they are the right fit for students who seek research opportunities and academic studies, especially in the fields of mathematics and science.

Community college is a type of higher education program popular with students on a limited budget who want to take college courses but may not know what they want to major in. Most schools offer degrees after two years of study, usually an associate’s degree that prepares students to enter the workforce; many students choose to study at a community college for two years and then transfer to a four-year college to complete their undergraduate degree. Like liberal arts schools, classes are small and allow instructors to pay more attention to their students. Community college allows students to live at home rather than in a dormitory, which also keeps costs down. While some young people might not like the idea of living at home for school, many adults choose to attend community college so they can advance their education while working and living with their families.

Online universities are another type of higher education program that are gaining popularity as technology improves. These schools offer many of the same degree programs as traditional liberal arts colleges and universities. Unlike traditional programs, which require students to attend classes and lectures, online universities offer greater academic flexibility and are a great option for students wishing to pursue a degree while still working full time. At online universities, students access course materials, such as video lectures and assessments, remotely using a personal computer and are able to speed up or slow down their progress to complete their degree at their own pace. Students may attend classes in the comfort of their own homes or local libraries, but students hoping for the social community of higher education might not enjoy this aspect of higher education.

With so many colleges and universities to choose from, it may be difficult for a student to narrow down his or her selection, but once a student knows what he or she is looking for, the process may become much easier. It is very important for students to learn about the different types of higher education programs available before making their selections.

External Link

Amy Tan describes relationship with her heritage, her mother, and her languages in " Mother Tongue   " ( https://tinyurl.com/hya7ob5 ). The essay is also available here ( https://tinyurl.com/y7gbr9hs ).

Contributors and Attributions    

Adapted from  Successful College Composition (Crowther et al.) . Sourced from  LibreTexts , licensed under  CC BY-NC-SA  .

Adapted from  Let's Get Writing (Browning, DeVries, Boylan, Kurtz and Burton) . Sourced from  LibreTexts , licensed under  CC BY-NC-SA  .

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cost classification essay

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To complete the assignment I will be using a combination of lectures notes, text books and the internet to research the various ways of cost classification, and how different companies use these, to enable me to answer the assignment question. Findings: 1. Cost classification Cost classification is the breakdown of costs in to similar categories and sub-categories. Cost classification can be done with various methods and for different reasons, depending upon the reason for use. For example, a management may use controllable and uncontrollable cost classification, to identify which costs are controlled by management and which are not...

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