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What else can I help you with?
What is the cost of money?
Interest rate
How do you calculate cost of deposit of banks?
cost of deposits= Interest paid on Deposits/Total deposits
What is interest rate reduction?
Simply reducing the amount of interest on the principle. Reduction of interest will greatly reduce the overall cost of the loan.
Is interest on partners loan a part of appropriation of profit?
Interest on loan to a business is a finance cost. Irrespective who the loan is coming from, the cost of sericing the loan, that is, the interest, is to be charged in the Income Statement. In theory it is not an appropriation (division) of profit.
What is the market rate of interest formula used to calculate the cost of borrowing money?
The market rate of interest formula used to calculate the cost of borrowing money is: Market Rate of Interest Risk-Free Rate Risk Premium.
Why relevant range important?
outside the relevant range, variable cost and fixed cost behaviors patterns may change
What is the difference between cost of debt and cost of equity?
Cost of Debt: when company borrow funds from outside or take debt from financial institutions or other resources the interest paid on that amount is called cost of debt.Cost of Equity: Similarly when firm raise money from already shareholders by issuing more shares to them or shares to new share holders then the dividend (interest) paid to them is called cost of equity.
A cost is considered relevant if it is avoidable and future and cash?
A cost is considered relevant if:
Is opportunity cost a relevant cost?
Yes, opportunity cost is a relevant cost because it can be used in something more productive.
What are the advantages of relevant cost?
1.Relevant cost helps provide a consistent basis for the comparison of alternative proposal. 2.Relevant cost deal with the quantitative aspects of decisions.
When is fixed cost relevant in decision making?
When there will be change in fixed cost of business then at that time fixed cost will be relevant cost For Example if acquiring new machinery will reduce the amount of fixed expense in that case fixed cost is also relevant.
Are you agree avoidable cost is relevant cost?
yes
Is avoidable cost a relevant cost?
yes , indeed .
In management accounting what are relevant costs?
Relevant cost is that cost which will be affected due to the decision company going to make.
What is the distinction between relevant cost and irrelevant cost?
Relevant cost is that cost which is necessary for the underlying decision in decision making process while irrelevant cost is not necessary to be decision to be made.
Is variable cost a relevant cost?
No. If a variable cost does not differ between alternatives than it is irrelevant.
Is fixed cost relevant in determining price of a product?
The fixed cost is relevant in determining price of a product. This is a cost that is associated with the product and will contribute to the total production cost of a product.
