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The three basic elements of costs are direct materials, direct labor, and overhead. Direct materials refer to the supplies used in production, direct labor refers to the cost of labor directly involved in production, and overhead encompasses all other production costs not directly tied to materials or labor.
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What two elements may be thought of as a pool of costs?
Labor and materials may be thought of as a pool of costs. Labor costs represent the expenses associated with the workforce, while materials costs refer to the expenses related to the raw materials or components needed for production.
Explain why operating leverage decrease as a company increase sales and shifts away from the BEP?
As sales increase, a company's fixed costs remain the same, causing the contribution margin ratio to improve and operating leverage to decrease. This is because a higher proportion of each additional sales dollar goes toward covering fixed costs rather than variable costs. Operating leverage is highest at the breakeven point where fixed costs are fully covered.
What are the components of TCO analysis?
Total Cost of Ownership (TCO) analysis includes several key components: initial acquisition costs, which cover the purchase price and installation; operational costs, encompassing maintenance, support, and training expenses over the product's lifecycle; and indirect costs, such as downtime, lost productivity, and potential obsolescence. Additionally, TCO may consider financing costs and any associated risks. By evaluating these elements, organizations gain a comprehensive understanding of the long-term financial implications of their investments.
Explain why a lithium cadmium battery is more expensive than a zinc carbon battery?
Zinc and carbon are widely available and relatively cheap. Cadmium is a toxic metal and waste streams are expensive to treat. Lithium is very reactive and more expensive to extract. So raw material costs/handling costs are higher for Lithium Cadmium
Can the periodic table predict the monetary values of elements?
The periodic table itself does not predict the monetary values of elements, as these values are influenced by various factors such as market demand, extraction costs, rarity, and industrial applications. While some elements may be more valuable due to their unique properties and uses, such as gold or platinum, the periodic table primarily organizes elements based on their atomic structure and properties rather than economic factors. Therefore, while there may be a correlation between an element's position on the periodic table and its value, the table does not provide a direct prediction of monetary worth.
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.
What are two categories used to explain the basic cost of mobility?
mobility and non-mobility costs
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 the direct expenses?
Direct expenses increase or decrease based on the rate of production. For example raw material costs increase as more products are made.
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.
If optional equipment costs 9120 and a basic car costs 120 more than four times the price of optional equipment what's the cost of a basic car?
The basic car costs 120 + 4 x 9,120 or 36,600.
Which basic production planning strategy will build inventory and avoid the costs of excess capacity?
Which basic production strategy will build inventory and avoid the costs of excess capacity
What is the basic C-V-P equation?
Sales revenue - Variable costs - Fixed costs = Profit
What are finance costs?
IN Basic they would be costs of interest charged on business loans, costs of banking, costs of purchasing a loan. Banks will charge to arrange a business a loan.
What are the basic techniques to get maximum sale and profit?
most basic would be to reduce your costs, and acquiring assets like machinery and AI systems that will cut costs in the long run
When does a cost become an expense do all costs become expenses?
so all costs become expenses? explain it
What does an xbox 360 cost?
A basic model costs about £139.99
