This report discusses the value of cost classification and useful costing techniques in management accounting, with a focus on the case study of Daffy Ltd. It explores the importance of cost classification in identifying overall costs and supports decision-making for business growth. The report also examines various costing techniques such as uniform costing, marginal costing, standard costing, historical costing, direct costing, and absorption costing, and recommends absorption costing as the most suitable method for product cost in Daffy Ltd.