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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.
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
Why can't a star fuse chemical elements beyond iron?
It sure can - and some stars do, to a minor degree. However, it can no longer gain energy from this fusion - it costs energy to create heavier elements. --- To fuse Iron, you would need a huge amount of heat and pressure, higher than what can be provided by even the massive stars is existence. The upper limit of a stars mass puts this limit on what materials it can fuse. Elements heavier than Iron are created during a supernova explosion, the death of a massive star.
Costs can be classified by function?
Yes, costs can be classified by function into various categories such as production, marketing, research and development, and administrative costs. This classification helps in analyzing and managing expenses effectively by assigning costs to specific activities within a business.
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 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 is the basic C-V-P equation?
Sales revenue - Variable costs - Fixed costs = Profit
When does a cost become an expense do all costs become expenses?
so all costs become expenses? explain it
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
What does an xbox 360 cost?
A basic model costs about £139.99
