Difference between avoidable cost and unavidable cost?
Avoidable Cost = These are those costs which can be avoidable by
doing or not doing any particular activity For Example :Direct
Unavoidable Costs = These are those costs which are not avoidable whether do or donot initiate any activity For example: Fixed Cost
But sometimes fixed costs are also avoidable or unavoidable by doing or not doing any activity in these cases fixed costs are also avoidable costs.
I think that avoidable cost is the cost that can be avoided if certan decision is taken or not taken. It is more or less cost which is varied according to the decision taken by management. That is all variable cost can be said to be avoidable On the other hand unavoidable cost is that cost which cannot be avoidable at least for the short term. This means that unavoidable cost can be said to…
Avoidable or escapable costs are those costs which can be avoided by stop doing or start doing any particular activity and unavoidable costs are those costs which cannot be avoidable whether activity is done or not. For Example all variable costs are avoidable costs and fixed costs are unavoidable costs but this is general criteria to explain but not always all fixed costs are unavoidable.
In case that company uses its equity from retained earnings or contributed capital in addition to borrowed funds to carry out the project, it is possible the avoidable interest is greater than actual interest. Due to the calculation method for avoidable, where you multiple the weighted average interest rate for other borrowing by the rest of the funds used for the project plus the specific funds borrowing interest cost to get the avoidable cost, it…
The difference between the cost of an asset and the accumulated depreciation for that asset is called?
There is no difference between the cost of goods sold and cost of sales. Both are same. What if Cost of Sales relates to a service rather than a "good"? Does that not signify a difference? For example a cost of sales for a service would contain no starting and finishing inventory component as is described in some texts as a way of calculating cost of goods sold.
No they are not the same things. Differential costs are ones that differ between different alternatives. Differential costs are used interchangeably with the terms avoidable, incremental, and relevant costs. However, variable costs are simply ones that vary with different activity levels. They do not necessarily differ between alternatives.