The process of grouping of costs according to some common characteristics ________.

The correct answer is D. classification.

Classification is the process of grouping of costs according to some common characteristics. This can be done in a number of ways, such as by type of cost (direct or indirect), by function (production, marketing, administration), or by object (product, customer, department).

Absorption is a method of accounting for product costs that includes both direct and indirect costs. Primary distribution is the process of assigning direct costs to products or services. Secondary distribution is the process of assigning indirect costs to products or services.

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