a flying car, and if everyone had a flying car, how would you control the air space?
In traditional cost system overheads are allocated to products based on predetermined rate and that’s why some of that cost which is not related to that product charged to it and due to which actual cost of product cannot be determined.
Cost centre is that department or that area due to which company has to incur and that cost is included in product cost, So production department is a cost centre because all costs are incurred due to production of volume of product while selling department is called revenue department because due to this department revenue is actually generated.
Variable cost is that cost which changes with level of production while incremental cost is that extra cost which increased due to change in alternative products or from selecting one product to another product.
product cost
Product cost
Should typically be a product cost.
The fixed cost is relevant in determining price of a product. This is a cost that is associated with the product and will contribute to the total production cost of a product.
Period Cost: It is that cost which must be incurred by the company no matter it produce any product or not. Product cost: Product cost is that cost which is necessary to produce any production units to earn revenue.
Product cost
The relationship between total cost and total product is that total cost represents the expenses incurred in producing a certain quantity of goods, while total product refers to the total output produced by these inputs. As total product increases, total cost may also increase due to additional resources needed for production. However, the relationship is not linear; initially, total costs may increase at a decreasing rate due to efficiencies, but eventually, they can rise at an increasing rate due to diminishing returns. Understanding this relationship helps businesses optimize production while managing costs effectively.
Indirect labor is considered a period cost because it can't be traced by to the product. If a cost can be traced back to a product, then it is considered a product cost.
U can say wt would be the right among the four options. Manufacturing cost of product, Cost of mark-downs and Inventory carrying costManufacturing cost of product, Cost of mark-downs, cost of lost of sales through stock outs and Inventory carrying costSelling cost of product, Cost of mark-downs and logistic costManufacturing cost of product, cost of lost of sales through stock outs and Inventory carrying costManufacturing cost of product, Cost of mark-downs and Inventory carrying costManufacturing cost of product, Cost of mark-downs, cost of lost of sales through stock outs and Inventory carrying costSelling cost of product, Cost of mark-downs and logistic costManufacturing cost of product, cost of lost of sales through stock outs and Inventory carrying costManufacturing cost of product, Cost of mark-downs and Inventory carrying costManufacturing cost of product, Cost of mark-downs, cost of lost of sales through stock outs and Inventory carrying costSelling cost of product, Cost of mark-downs and logistic costManufacturing cost of product, cost of lost of sales through stock outs and Inventory carrying costManufacturing cost of product, Cost of mark-downs and Inventory carrying costManufacturing cost of product, Cost of mark-downs, cost of lost of sales through stock outs and Inventory carrying costSelling cost of product, Cost of mark-downs and logistic costManufacturing cost of product, cost of lost of sales through stock outs and Inventory carrying cost