Answer:
The Management
XYZ Company Ltd
Dear Sir/Ma'am,
<u>Memo: Costs and the Importance of Classifying them</u>
Below are the following classifications of cost:
Cost grouped by Nature
- Product of Service cost- This can be further categorised as:
- Material Cost
- Labour Cost: This is further classified into - Immediate Monetary Benefits, Future Monetary Benefits, Non-Financial Benefits, Expenses
Cost grouped according to location or centre
- Direct Costs
- Direct Material Costs
- Direct Labour
- Direct expenses
- Indirect Costs
- Indirect materials
- Indirect Labour
- Indirect expenses
Cost classified according to time
- Historical Costs
- Predetermined Costs
- Standard Costs
- Estimated Costs
Cost Classified by Decision Making
- Marginal Cost
- Differential Cost
- Opportunity Cost
- Relevant Cost
- Sunk Cost
- Replacement Cost
- Normal Cost
- Abnormal Cost
- Avoidable Cost
- Unavoidable cost
- Pre-production cost
- Production cost
- Period cost
- Traceable cost
- Common Cost
- Controllable cost
- Uncontrollable cost
- Short-run Cost
- Long-run Cost
- Past Cost
- Future Cost
- Explicit Cost
- Implicit cost
- Book cost
- Shut down cost
- Abandonment Cost
- Urgent cost
- Postponable cost
- Conversion Cost
Cost Category according to Type of Production Process
- Batch Cost
- Process Cost
- Operation Cost
- Operating cost
- Contract Cost
- Joint Cost
Categorising costs helps with:
- effective cost control
- financial planning
- determination of selling prices
- Budgetary conrol
- apportionment of overheads
- decision making etc.
Sincere regards
Cheers!
Answer:
b) false
Explanation:
The basic classifications of project priorities are cost, time and performance. Profit is not included in the list, cost is included.
A project manager must decide how to manage the trade offs between cost, time and performance. E.g. if you want something well done and cheap, you cannot expect to have it done fast. If you want something done well and fast, it wouldn't be cheap.
If x is 12 the answer is -12
Answer:
Answer: The net operating income used in contribution approach the first quarter is 171600
Explanation:
Description Amount Amount
Sales 960000
Variable expenses:
Cost of good sold 670000
Variable selling 80000
(5 per book*16000 books)
Variable administrative 38400
(960000*4%)
Total variables expenses 788400
contribution margin 171600
working note:
unit sales=960000/60 per book=16000 book
Answer:
The law of demand states that all other things being equal, the quantity bought of a good or service is a function of price. As long as nothing else changes, people will buy less of something when its price rises. They'll buy more when its price falls.
Explanation: