What is opportunity cost? Opportunity cost refers to the value a person could have received but passed up in pursuit of another option. So, if you were to wait in line for free ice cream, you actually give up the opportunity to do somethin...
for example, may have several sunk costs, such as the cost of machinery, equipment, and the lease expense on the factory. Sunk costs are excluded from a sell-or-process-further decision, which is a concept that applies to products that can be sold as they are or can ...
for example, may have several sunk costs, such as the cost of machinery, equipment, and the lease expense on the factory. Sunk costs are excluded from a sell-or-process-further decision, which is a concept that applies to products that can be sold as they are or can ...
2.Factory cost:This is made up of prime cost plus factory overhead, which includes indirect wages, indirect material and indirect expenses. Factory cost is also known as works cost, production cost, or manufacturing cost. Factory cost = Prime cost + Factory overhead ...
A variable cost is an expense that changes in proportion to production output or sales. When production or sales increase, variable costs increase; when production or sales decrease, variable costs decrease. Variable costs stand in contrast to fixed costs, which do not change in proportion to pro...
Cost basis is the original value of an asset for tax purposes, adjusted for stock splits, dividends, and return of capital distributions.
Knowing your landed cost—the sum of expenses required to get your products to customers—is essential for running a profitable ecommerce business.
A standard cost is not the same as a budget. A budget is an estimate of expenditures for a specific accounting period, typically aquarteror year. Standard costs are estimates used for totals in some of the line items in that budget, as they related to manufacturing costs....
Fixed costs are expenditures that do not change based on sales (or lack thereof). They are set expenses the business has committed to that are not tied to production volume.
What Is Agency Cost? A business's owners and managers don't always see eye to eye. Some actions would benefit one party over the other, so there's a level of tension that persists. It is from this tension that agency costs arise. ...