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What type of cost is incurred regardless of how much of a good or service is produced?
Wiki User
∙ 14y ago
This type of cost is known as a Fixed Cost: a cost that remains constant, regardless of any change in a company's activity.
Wiki User
∙ 14y ago
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What are the objective of a management control system?
profit centre is responsible for a) cost incurred b) total investment c) revenues earned and cost incurred
What does marginal cost mc refer to?
the amount a firm's costs change when an additional good or service is produced
What is the difference between sunk cost and fixed costs?
A fixed cost is a cost that will not change in total regardless of output. For example, no matter how much output you produce, rent expense is generally going to remain unchanged. A sunk cost is a cost that has already been incurred, and thus shouldn't factor into management decisions. For example, if you were making a decision about whether to manufacture a material rather than buy it from an outside provider, you would only care about which costs would change as a result of the decision. Any costs that would be the same regardless of whether you make or buy would be considered sunk costs.
How calculate total period cost?
A total period cost is anything that is not prepaid. To calculate period cost, just include anything that is charged in the period incurred.
How does the cost sharing principle influence the level of taxation?
The cost sharing principle influences the level of taxation by replacing market prices with incurred costs.
What type of costs is incurred regardless of how much of a good or service is produced?
This type of cost is known as a Fixed Cost: a cost that remains constant, regardless of any change in a company's activity.
Is depreciation on manufacturing equipment a variable cost?
Depreciation of manufacturing equipment is fixed cost because that cost will incurred no matter how much units produced.
What are the Importance of cost accounting to manufacturing?
How else would you know what costs really were and where they were incurred, and hence how to charge a price that produced a profit?
What is the activity that is thought to cause a cost to be incurred?
The activity that is thought to cause a cost to be incurred is called an
What is capacity cost?
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.
A cost that is previously incurred and irreversible is known as?
opportunity cost historical cost
When should be the cost of product warranty included as an expense?
Just as with any other cost of doing business, When the expense is incurred in the course of production or service then those costs should be included in expenses.
Is Standard Cost same as actual cost?
Standard cost is that cost which is budgeted at start of production while actual cost is that cost which actually incurred by business both of them can be same if actual cost incurred is same as allocated or determined in budgeting process using standard cost otherwise there will be difference.
What is the difference between obsolence cost and deteroration cost?
Obsolence cost is that cost which is incurred by company due to obsolence of any assets of business while deteroration cost is the cost which is incurred by small deteroration of any asset of business.
What are the cost drivers which are used in apportioning overheads cost under activity based budgeting?
Cost drivers are activities due to which cost incurred for expample as many time as machines are setup for production as many time machine setup cost will be incurred so matchine setup is cost driver.
What are the objective of a management control system?
profit centre is responsible for a) cost incurred b) total investment c) revenues earned and cost incurred
Why does the gross profit increase when the value of closing stock increases?
It doesn't. Gross profit is the of a company is the profit it receives for the product or service produced after the cost of that service or product. It does not take into account any other expenses incurred by the company. Net profit takes this into consideration. Price of stock can increase or decrease the available money for a company to invest or use for generating income.
