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:
The answer is: C) team-based new product development
Explanation:
Team based new product development: When a company assembles a cross functional team of employees form different departments to work on the development of new products or services.
This approach has the advantage of saving time over the traditional process of passing a new product from one department to another.
A tax on purchases, also Called sales tax
There are most likely more than five factors that influence technological progress, but they might include funding for scientific and technological projects, the availability of scientists and engineers to lead technological studies, growing economic development, a business or science culture that supports technological discovery, and also potentially government support for technological discoveries and advancements.
Answer:
b. $765000
Explanation:
Depreciation is a non-cash item and as such will not be considered in the computation of the amount to be disbursed in the month.
Given that the company pays for 70% of its purchases in the month of purchase and the remaining 30% in the next month for direct materials, it means the company will pay 70% of the material purchase in August and 30% of July's purchase in August.
Hence, The budgeted cash disbursements for August are
= 70% * $530,000 + 30% * $370,000 + $160000 + $73,000 + $50,000
= $765,000