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capacity cost means cost associated with creation of capacity
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∙ 12y ago
Capacity cost refers to the fixed expenses incurred by a company in order to maintain and expand its production or service capabilities. It includes expenses related to acquiring, maintaining, and upgrading physical assets such as plants, equipment, and facilities. Capacity costs are incurred irrespective of the actual level of production or service provided and are an essential part of a company's cost structure.
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What is the difference between capacity cost and variable cost?
capacity cost : it is the cost which is incurred to increase its ability which can reduce or avoid by shutting down business variable cost: which varies with the output
How do activity-based costing and the traditional cost system treat idle capacity costs differently?
Traditional costing system allocates the idle capacity cost to completed units while activity based costing only allocates the cost of capacity which is utilized while remaining capacity is expensed to income statement as period cost.
What is the general relationship among access time memory cost and capacity?
Faster access time, greater cost per bit; greater capacity, smaller cost per bit; greater capacity, slower access time. As a general rule (but there are exceptions) the greater the capacity of a memory the longer the access time. For a higher cost the access time of a given capacity memory can usually be shortened some. As a general rule (but there are exceptions) the greater the capacity of a memory the total memory cost increases, but the memory cost per bit decreases.
What is the cost of sintex storage tank with a capacity of 10000 liters?
what is the cost of sintex storage water triple layer tank of capacity 1000litre
What does it mean if a firm has excess capacity?
a firm has excess capacity if it produces below its efficient scale, whcih is the quantity at which total cost is a minimum.
What's the most capacity you can get on a blank dvd?
A double sided DVD-r will hold 8.5 GB.They do cost more,but not in comparison to the capacity.
How do you find the cost of direct labor?
cost of direct labor is the total cost of workers involve in production divided by normal capacity is per unit direct labor cost.
When you have to use variable cost pricing?
it is used when company is operating below its capacity.
What is the cost of sintex storage tank with a capacity of 5000 liters?
rs.25000.00
How do you find direct labor cost?
Direct labor cost is the total cost of salaries and wages paid to workers / number of units to be manufactured for normal capacity
How do you calculate direct labor cost?
direct labor cost is total wages and salaries of workers divided by production at normal capacity.
Expliain Cost- Output relationship both in the short-run and long-run?
THE SHORT-RUN COST-OUTPUT RELATIONSHIP REFERS TO A PARTICULAR SCALE OF OPERATION OR TO A FIXED PLANT. IT INDICATES VARIATIONS IN COST OVER OUTPUT FOR THE PLANT OF A GIVEN CAPACITY AND THEIR RELATIONSHIP WILL VARY WITH PLANTS OF VARYING CAPACITY.
