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In the process of decision making between mutually exclusive projects any cost which is left due to selection of alternative project is called the opportunity cost.
For Example:
if a person select project a and have to loss 1000 due to selection of project a, or if person select project b and loss 2000 due to it then project a has an opportunity cost of 1000 while project b has 2000.
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What is cost driver and cost pool?
Cost driver is the basic activity which increases the or utilize the cost while cost pool is that in which all costs are jointly shown for example machine setup cost is cost driver while over all overheads is cost pool.
Is transportation cost an ordering cost?
yes transportation an ordering cost
How do you calculate cost of deposit of banks?
cost of deposits= Interest paid on Deposits/Total deposits
What are the total costs to make a quantity of 15000 units per year with a fixed cost of 100000 per year and a variable costs of 4.00 per unit?
Total Cost = Variable Cost + Fixed CostVariable Cost = 4 per UnitTotal Units to produce = 15000Variable Cost = 15000 * 4 = 60000Total Cost = 60000 + 100000Total Cost = 160000
How does the cost of debt differ from the cost of capital?
Cost of debt considers only the cost that goes to the debtholders. Cost of capital considers debt and equity costs both.
