Q: Is depreciation expense or depreciation cost is fixed cost or variable cost in nature? Fixed costs: Fixed costs are such costs that do not change with the change in activity level within the relevant range. Where relevant range can be defined in terms of time or activity level. Variable costs: Variable costs are such costs that change with the change in activity level . Coming to the question‚ depreciation expense or depreciation cost can either be fixed or variable and this depends on the
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suffering due to lack of freedom. We see it in the Middle East‚ especially now‚ we also see it in a lot of African countries. In any country who is not democratic‚ there seems to be an issue. Even in the rich China‚ yes indeed they are rich but their GDP per capita puts them far away from the democratic countries‚ as Chinese common folk live rather miserably. The Middle East who has been riddled with violence for many years now is a prime example‚ there is not even one country who we can consider democratic
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Cost Accounting – Classification of costs Cost accounting refers to a process of accumulating‚ recording‚ classifying and analyzing all costs incurred at various levels of production. The purpose of cost accounting is manifold. It provides a final selling price‚ suggests the best possible course of action where maximum savings are possible and a strategy for future. Cost accounting is also constructive in comparing the input and output results that ultimately aids the management to arrive at a financial
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products. Chuck questioned if the current cost-management system was providing the management with accurate data about product costs. In a traditional‚ volume-based product-costing system‚ only a single predetermine overhead rate is used. All manufacturing-overhead costs are combined into one cost pool‚ a grouping of individual indirect cost items‚ and they are applied to products on the basis of a single variable that costs over a given time span (cost driver) that is closely related to production
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Topic 6: Management Accounting and Cost Case: Shelter Partnership a. My main learning outcomes from Topic 6 and the Case Study; 1) Firstly‚ I realize management accounting has much to offer. Somehow I can handle physics but not accounting. Now thanks to this course I can appreciate and make sense of it. The bit that really caught my attention was seeing how management accounting can be really useful for business planning‚ cost management‚ budgeting and performance measurement. It offers
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exact implications of this problem. Example: George‚ a co-owner of a small coffee shop has noticed that there are fewer customers coming in to his store. He is worried about his profit‚ and is reluctant to change anything about the store due to the cost. Max‚ the other owner‚ is more concerned with the quality of the food they
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Cost Theory in Economics A central economic concept is that getting something requires giving up something else. For example‚ earning more money may require working more hours‚ which costs more leisure time. Economists use cost theory to provide a framework for understanding how individuals and firms allocate resources in such a way that keeps costs low and benefits high. 1. Function * Economists view costs as what an individual or firm must give up to get something else. Opening a
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Tata Consultancy Services (TCS) Placement Paper Held on 28th January 2010 1) APTITUDE TEST: Questions = 82 ; time limit = 90 minutes. no negative marking. Offline (paper & pen) test and a PSYCHOMETRY TEST also. Section 1: VERBAL ( 32 Questions ‚20 minutes ) Directions for questions 1-10:Find the synonyms of the following words 1. Depreciation A. appreciation B. Deflation C. rise D. None of these Ans: B 2. Circumspect A Condition B Inspect C. Cautious D Reckless Ans: C 3. Abysmal A
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Microeconomics Topic 6: “Be able to explain and calculate average and marginal cost to make production decisions.” Reference: Gregory Mankiw’s Principles of Microeconomics‚ 2nd edition‚ Chapter 13. Long-Run versus Short-Run In order to understand average cost and marginal cost‚ it is first necessary to understand the distinction between the “long run” and the “short run.” Short run: a period of time during which one or more of a firm’s inputs cannot be changed. Long run: a period of time during which
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COST OF PRODUCTION CONTENTS 1. Introduction 2. Types of costs 3.1 Opportunity‚ implicit and explicit costs 3.2 Fixed and variable costs 3.3 Average costs 3. Types of cost curves 4.4 Marginal cost curve 4.5 Average cost curves 4. Costs in Short run and in the Long run 5.6 Short run 5.7 Long run 5.8 Economies of scale 5. Cost analysis in the real world 6.9 Economies of scope 6.10 Experiential
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