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Specificity refers to the percentage of an investment that will be lost if the asset is switched to another use. Sunk cost is a cost that cannot be avoided once incurred. The relation between them is
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How do you explain fixed costs really being variable when the more you produce the less they become?
The basic point is that fixed costs, even though they stay the same, become less in relation to the increased production.
Future costs that do not differ between alternatives in a decsion are avoidable costs is this true or false?
TRUE
What is the distinction between product costs and period costs?
product costs are the costs that are assiciated with the whole project you are working on..from start to finnish. period costs are those costs that you need for a certain time fraime within the project itself.
How does capital asset pricing model help explain changing costs of capital?
It helps to explain the costs of capital by creating a model which intuitively understands the cost of capital as a function of a small number of well-understood economic variables, such as interest rate, demand, future discount, and capital stock.
Define cost explain different costing methods and techniques?
It is important to have your costs and costing methods in order. This will ensure that your money is being well spent.
How do you explain fixed costs really being variable when the more you produce the less they become?
The basic point is that fixed costs, even though they stay the same, become less in relation to the increased production.
What is the specificity rule?
"The Specificity Rule states that it is usually more efficient to use the government policy tool that acts as directly as possible on the source of distortion separating social benefits or costs: identify the source of the problem and intervene at the source (Pugel, INTERNATIONAL ECONOMICS 14ed, p204)."
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 is the difference between escapable and unavoidable cost?
Avoidable or escapable costs are those costs which can be avoided by stop doing or start doing any particular activity and unavoidable costs are those costs which cannot be avoidable whether activity is done or not.For Example all variable costs are avoidable costs and fixed costs are unavoidable costs but this is general criteria to explain but not always all fixed costs are unavoidable.
What is the iceberg effect in relation to accident costs?
they both cost alot of moola
How do you calculate the optimal size of IPO?
parameters include direct costs and their relation to scale
When does a cost become an expense do all costs become expenses?
so all costs become expenses? explain it
3 Distinguish between prime costs and conversion costs?
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What best explain why considering opportunity costs is a rational thing for consumers to do?
What you sacrifice for a decision is one of the non-monetary costs of many choices.
What is the difference between cost centre and cost unit?
cost centre is a production or service location, function, activity or item of equipment for which costs are accumulated(i.e stores,canteen, farm, personnel) cost unit is a unit of product or service in relation to which costs are ascertained(i.e typewriter,thousand of washers)
Explain some of the basic principles of cost management such as profits life cycle costs tangible and intangible costs and benefits direct and indirect costs reserves and so on?
Do your homework, kid.
Briefly explain what is classification of cost?
Classification of cost is where expenses are divided into categories that include variable costs, fixed costs, material costs. These costs relate to business activities.
