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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A TERM PAPER ON THE RECOGNITION OF OPPORTUNITY COST AND RELEVANT COST: A TOOL FOR EFFECTIVE BUSINESS DECISION MAKING BY IWUCHUKWU UCHENNA IWUAKU O9AA08549 ACCOUNTING 300L LECTURER: MRS OBIGBEMI INTRODUCTION The role of opportunity cost and relevant cost cannot be overemphasized in the making effective decision making. They work hand in hand in making sure that the company makes the best economic decision‚ they are both used in making managerial decisions at every level of planning and
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discounted cash flow (DCF In finance‚ discounted cash flow (DCF) analysis is a method of valuing a project‚ company‚ or asset using the concepts of the time value of money. All future cash flows are estimated and discounted to give their present values (PVs) — the sum of all future cash flows‚ both incoming and outgoing‚ is the net present value (NPV)‚ which is taken as the value or price of the cash flows in question. Using DCF analysis to compute the NPV takes as input cash flows and a discount
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Classification of Cost Cost may be classified into different categories depending upon the purpose of classification. Some of the important categories in which the costs are classified are as follows: 1. Fixed‚ Variable and Semi-Variable Costs The cost which varies directly in proportion with every increase or decrease in the volume of output or production is known as variable cost. Some of its examples are as follows: • Wages of laborers • Cost of direct material • Power The cost which does
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INDEPENDENT STUDY – I “Study of time and cost of labour productivity for a construction project” Submitted by: Eshani Kothari Code: PT100513 Guided by: Prof. P Akalkotkar Chairman‚ M.Tech (CEM) CEPT University M.Tech. programme in construction Engineering and Management CEPT University Ahmedabad- 380009 1 INDEX TABLE OF CONTENTS Sr no Chapter I 1.1 1.2 1.3 1.4 1.5 1.5.1 1.5.2 1.5.3 1.6 1.7 1.8 Chapter II 2.1 2.2 2.2.1 2.2.2 2.3 Chapter III 3.1 3.2 Chapter
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have done above is a “full-cost” analysis. This is in contrast to a “direct-cost” analysis that ignores overhead costs. Is full cost the right metric for job profitability and customer profitability? What assumptions are we making about the variability of overhead costs when we do a “full-cost” analysis? By allocating the overhead costs to jobs and customers there is an implicit assumption that these are variable with the cost driver. In reality‚ some of the overhead costs are fixed‚ at least in the
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Plant overhead $122‚000 D/L rate/hour $30 Youngstown has a traditional cost system. It calculates a plant-wide overhead rate by dividing total overhead costs by total direct labor hours. Assume‚ for the calculations below‚ that plant overhead is a committed (fixed) cost during the year‚ but that direct labor is a variable cost. 1. Calculate the plant-wide overhead rate. Use this rate to assign overhead costs to products and calculate the profitability of the four products. The assignment
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Hours sitting in a library‚ carrying loads of books‚ saving money for years to pay tuition fees‚ staying up all night studying for demanding exams‚ working on group projects‚ moving to another state or country and leaving family and friends are all circumstances that happen to anyone going to college. As they require mental‚ physical and financial preparation‚ they must receive some attention throughout a student’s entire school life. In the environment I live‚ I am sure that my school and family
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imply either pain or sacrifice. ’ Coaching is one tool that can be used to help others develop. It is‚ therefore‚ about supporting the change process and‚ used effectively‚ coaching should help lessen the impact of change and maximize the opportunities for growth. Change is a cyclical process. As a coach it is useful for you to be aware of the cycle‚ which describes our natural response to change‚ so that you can help your coachees to move through the
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Economics report Question 1 a) Why does choice arise in economics? Use one example or more to discuss the concept of “rational choice” and opportunity cost. b) What do you understand by the law of demand? Pick a product and discuss two factors‚ which in your opinion would cause the demand curve to the left. Can you think of two other factors which would shift the supply curve of your product to the right? According to Sloman (2007)‚ economics is a social science that studies human
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