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Full-cost accounting is historically. Reduce raw material cost and risk of interruption to supply. Waterfall presentation of the Total Value of a food company. 52 CHAPTER FOUR. Classification of Manufacturing Costs and Expenses Cost Classification In accounting, the term cost refers to the expenditure or sacrifice made to acquire something of value. In financial accounting, all transactions are recorded in terms of historical cost; that is, the money expended or to be expended at the date of the.