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"A committed fixed cost has a long future planning horizon- more than on year.
A discretionary fixed cost has a short future planning horizon-under a year."
Source: http://www.drtaccounting.com/2008/08/discretionary-fixed-cost-committed.html
Another source: Just got the answer correct for my Accounting quiz!
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Financial project on Financial planning and forecasting?
A project that would accurately showcase financial planning and forecasting would be a budgeting project. A budget would clearly show the value in planning and being able to predict future financial costs.
What are fixed cost of a limited liability company?
Fixed costs for a limited liability company (LLC) are expenses that do not change with the level of production or sales. These can include rent or lease payments for office space, salaries of permanent employees, insurance premiums, and certain utilities. Unlike variable costs, fixed costs remain constant regardless of the company's output, making them essential for budgeting and financial planning. Understanding these costs helps LLCs manage their finances more effectively.
What is internal transaction cost and external transaction cost?
Internal transaction costs refer to expenses incurred within an organization when managing and coordinating its own resources, such as administrative overhead, communication, and decision-making processes. External transaction costs, on the other hand, arise from interactions with outside parties, including costs related to contracts, negotiations, and market transactions. Together, these costs influence a firm's operational efficiency and decision-making regarding outsourcing versus in-house production. Understanding both types of costs is crucial for optimizing resource allocation and strategic planning.
What is the start up cost of oil?
The startup costs for an oil venture can vary significantly based on several factors, including the location, type of oil project, and regulatory environment. Generally, initial expenses can range from hundreds of thousands to millions of dollars, encompassing costs for exploration, drilling, equipment, permits, and infrastructure development. For large-scale operations, such as offshore drilling, costs can escalate into the billions. Additionally, ongoing operational costs must also be considered in the overall financial planning.
What is considered prevention cost?
Prevention costs are expenses incurred to prevent defects or issues in products or services before they occur. These costs typically include investments in quality planning, training, process control, and preventive maintenance. They aim to enhance product quality and reliability, ultimately reducing the need for corrective actions and minimizing costs associated with failures. By focusing on prevention, organizations can improve efficiency and customer satisfaction.
Does committed fixed costs have a short term planning horizon-usually one year?
False
How does the planning of fixed overhead costs differ from the planning of variable overhead costs?
it doens't
A statistic planning budget is suitable for planning and for evaluating how well costs are controlled true or false?
A static planning budget is suitable for planning and for evaluating how well costs are controlled.
Apply the part period balancing method to find a production schedule?
The part period balancing method involves calculating the total demand for a product over a specific planning horizon and then determining the optimal production batches to meet that demand while minimizing inventory costs. To create a production schedule, first, forecast the demand for each period, then assess production costs and inventory holding costs. Next, produce enough units in each period to meet demand while considering setup costs to determine the most cost-effective production run. Finally, adjust the schedule iteratively to balance production and inventory levels over the planning horizon.
What are some examples of committed fixed costs?
leasing costs, committed costs are fixed costs that are caused by the possession of facilities, materials, etc.
What do capacity costs allow a firm to do?
Capacity costs (committed costs) give a firm the capability to produce or to sell,
What is journal voucher entry in tally of electricity bill office costs for Rs.400 received from horizon ent?
W
What is the cost of Horizon Milk per gallon?
Horizon Milk is currently $5.56 per gallon. Obviously this price is subject to fluctuation, and will most likely differ between grocery chains due to their location and shipping costs.
What is cost planning?
Cost planning is necessary for the following:Client DemandsCurrent Economic ConditionsIncreased CompetitionNeed for the Control of Construction CostsDistribution of Costs in a Balanced Manner
Why are committed fixed costs the most difficult of fixed costs to change?
Some committed fixed costs are the most difficult of fixed costs to change because they are required to maintain basic operations. For example, rent is a fixed cost that is difficult to change because it is bound by a lease.
What are the limitation of human resource planning?
A large limitation of human resource planning is uncertainty. Many HR professionals dislike the planning aspect because they believe it costs money in the form of time and training.
What it costs to paint a bathroom?
It depends on how big your bathroom is and how much wall space you are planning to cover.
