Cost Term DefinitionsCost Classificationa. Costs that do not change regardless of the number of units $($or volume$)$ of the cost object producedFixed costb$.$ The process of assigning direct costs to the relevant cost objects due to a direct linkagec. All direct manufacturing costs, including direct material costs and direct labor costsd$.$ Cost that changes in proportion to changes in the number of units produced $($volume$)$Variable coste$.$ Anything for which a measurement of costs is wanted or neededf. The process of assigning indirect costs to the relevant cost objects