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Building construction costs are not fixed costs; they can vary based on several factors such as materials, labor, project scope, and location. While some expenses, like land acquisition, may be considered fixed, many other costs are variable and can change throughout the construction process. Additionally, unforeseen circumstances, like changes in regulations or market conditions, can further influence overall costs. Hence, construction costs are typically more accurately described as a mix of fixed and variable costs.
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How do you account for shared costs by another company when building a fixed asset?
When accounting for shared costs incurred by another company in building a fixed asset, you should first determine the nature of the shared costs and ensure they directly relate to the asset's construction. Allocate the appropriate portion of these costs to the asset based on a reasonable basis, such as usage or benefit derived. Record these costs as part of the asset's capitalized costs on the balance sheet. Finally, ensure compliance with relevant accounting standards, such as IFRS or GAAP, regarding joint costs and fixed asset capitalization.
What does fixed costs means?
what does fixed costs mean
Why are Fixed costs also called capacity costs?
Fixed costs are considered capacity costs because if a company expands, fixed costs will change. Additionally, if a company adds more resources, fixed costs will change.
Variable costs are relevant and fixed costs are irrelevant?
Generally variable costs are relevant costs but if due to any decision fixed costs are also going to affected then fixed costs are also relevant costs.
Is fixed costs is a period costs?
Yes normally fixed costs are period costs because these costs have to be paid no matter production done or not.
How do you account for shared costs by another company when building a fixed asset?
When accounting for shared costs incurred by another company in building a fixed asset, you should first determine the nature of the shared costs and ensure they directly relate to the asset's construction. Allocate the appropriate portion of these costs to the asset based on a reasonable basis, such as usage or benefit derived. Record these costs as part of the asset's capitalized costs on the balance sheet. Finally, ensure compliance with relevant accounting standards, such as IFRS or GAAP, regarding joint costs and fixed asset capitalization.
Square foot commercial construction costs?
What are the square foot construction costs for a 3-story condo building and a 10-story condo building in Chandler, Arizona ? - Terry
Fixed costs are costs that?
Fixed costs are costs that donot vary with the quantity of the product produce and have no relation with volume of product like administration staff salary or building rent etc.
What are the square foot construction costs for a 3-story condo building and a 10-story condo building in Chandler Arizona?
A local builder or construction firm can answer your question.
What does fixed costs means?
what does fixed costs mean
Approximate construction cost of one sq meter in a commercial building?
Costs vary by geographic location.
What is direct cost of a building construction?
Following are direct costs:1 - Cement2 - workers3 - Electricity etc
What has the author Robert Leroy Peurifoy written?
Robert Leroy Peurifoy has written: 'Construction planning, equipment, and methods' -- subject(s): Building 'Estimating construction costs' -- subject(s): Building, Estimates
What is prelims?
Prelims is an abbreviation for preliminaries in a construction project and refer to costs for works not directly associated with the building of something such as surveys, insurance or mobilisation costs.
Why are Fixed costs also called capacity costs?
Fixed costs are considered capacity costs because if a company expands, fixed costs will change. Additionally, if a company adds more resources, fixed costs will change.
What has the author Keith Collier written?
Keith Collier has written: 'Fundamentals of construction estimating and cost accounting' -- subject(s): Accounting, Building, Construction industry, Data processing, Estimates 'Estimating construction costs' -- subject(s): Building, Estimates
Variable costs are relevant and fixed costs are irrelevant?
Generally variable costs are relevant costs but if due to any decision fixed costs are also going to affected then fixed costs are also relevant costs.
