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Private costs can also be borne by producers.
For example:
A consumer buys a unit of good, the private cost of him is mainly the price of the good.
A producer supplies a unit of good, the private cost of it is the cost of production.
There should be no definite answer for "who bears the private cost?".
Social costs = Private costs + External costs.
It's born by both consumers and producers.
Look up external costs in the internet.
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What is cost attached to the product as the product moves through the operating cycle?
As a product moves through the operating cycle, various costs are incurred at each stage, including production costs (materials and labor), overhead expenses (utilities and rent), and distribution costs (shipping and handling). Additionally, marketing and sales expenses are involved in promoting the product to consumers. These costs accumulate from the initial stages of production to the final sale, ultimately impacting the product's profitability and pricing strategy. Understanding these costs is crucial for effective financial management and pricing decisions.
Are selling costs variable costs?
If selling costs varies with production level then selling costs are variable costs but if they remain fix then these are fixed costs.
What is the difference between actual costs and budgeted costs?
Actual Costs are costs which have occurred and can be reliably measured. Budgeted Costs are costs which have been estimated, possibly by using Forecasted Costs.
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.
Employers incur operating costs for which payroll taxes?
Besides salaries and wages earned by employees, employers incur costs for various payroll taxes, including the employer's share of Social Security and Medicare, workers' compensation premiums and unemployment insurance. Often they also incur costs for certain employee benefits, including health insurance and post-retirement benefits. All in all, additional payroll related costs can amount to 30% to 40% of wages and salaries. Call 888-924-1776 for more information about payroll related operating costs.
