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The word "incur" means to acquire or sustain a negative benefit as a result of another activity. A cost incurred is a generally undesirable one brought about by a business or financial activity.
Example: closing a factory will require expenditures to shut down the site, remediate any hazards, and settle existing employment contracts.
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What is the activity that is thought to cause a cost to be incurred?
The activity that is thought to cause a cost to be incurred is called an
A cost that is previously incurred and irreversible is known as?
opportunity cost historical cost
What is the difference between obsolence cost and deteroration cost?
Obsolence cost is that cost which is incurred by company due to obsolence of any assets of business while deteroration cost is the cost which is incurred by small deteroration of any asset of business.
What are the cost drivers which are used in apportioning overheads cost under activity based budgeting?
Cost drivers are activities due to which cost incurred for expample as many time as machines are setup for production as many time machine setup cost will be incurred so matchine setup is cost driver.
Is fixed cost the same as sunk cost?
Sunk cost is that cost which is incurred in past so in decision making process any cost which is incurred in past has no effect on future events and due to which all fixed cost which are also incurred in past has no effect in future that's why it is not relevent for decision making process, so for decsion making point of view yes fixed cost is sunk cost.
What does incurred actuals mean?
Incurred Actual normally refers to costs or expenses and their actual value i.e. Incurred actual could be the actual cost of a licence to trade.
What is the activity that is thought to cause a cost to be incurred?
The activity that is thought to cause a cost to be incurred is called an
What does labor costs mean?
Labor cost means the direct labor cost incurred by business to manufacture units of products to be sold.
A cost that is previously incurred and irreversible is known as?
opportunity cost historical cost
Is Standard Cost same as actual cost?
Standard cost is that cost which is budgeted at start of production while actual cost is that cost which actually incurred by business both of them can be same if actual cost incurred is same as allocated or determined in budgeting process using standard cost otherwise there will be difference.
What is the difference between obsolence cost and deteroration cost?
Obsolence cost is that cost which is incurred by company due to obsolence of any assets of business while deteroration cost is the cost which is incurred by small deteroration of any asset of business.
What are the cost drivers which are used in apportioning overheads cost under activity based budgeting?
Cost drivers are activities due to which cost incurred for expample as many time as machines are setup for production as many time machine setup cost will be incurred so matchine setup is cost driver.
What are the objective of a management control system?
profit centre is responsible for a) cost incurred b) total investment c) revenues earned and cost incurred
Is fixed cost the same as sunk cost?
Sunk cost is that cost which is incurred in past so in decision making process any cost which is incurred in past has no effect on future events and due to which all fixed cost which are also incurred in past has no effect in future that's why it is not relevent for decision making process, so for decsion making point of view yes fixed cost is sunk cost.
What is an appraisal cost?
An appraisal cost is a cost of something which is incurred in assessing that products and services conform to requirements.
How do you solve conversion cost?
The following costs were incurred in August:
Accounting treatment of website development cost?
Expensed as incurred
