Cost Categories are a way of breaking down the various costs associated with running a business. They are designed to help businesses keep track of their expenses, so management can make more informed decisions about where to allocate resources. Cost Categories can include labor costs, materials and supplies, overhead costs, transportation, and marketing expenses. By categorizing costs, businesses can more easily identify areas that need improvement and ensure that they receive revenue from sales and other activities. The use of Cost Categories encourages business owners to think critically about their spending and maximize efficiency.