Cost Concept for Decision Making Homework Help
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Several cost concept knowledge is required by the management in order to achieve stability in the prices of their product. Various costs have various characteristics. In this article for Cost Concept for Decision making homework Help we discuss the cost concepts that lead a management to achieve financial decisions in the favor of a firm.
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Cost Concepts Helpful for Decision Making
The following concepts derived by our Cost Concept for Decision Making homework Help article writers are important from a management’s decision making point of view.
1. Fixed, variable and mixed cost: fixed cost can be a rent cost that does not change while a variable cost can be the ones that change every time like power bills. In this article for Cost Concept for Decision Making homework Help, mixed costs such as taxes and revenues to the government can be manipulated by using various tax aversion methods.
2. By product costs: just like saw dust in a wood mill there can be by products from any process in an industry. Selling that inevitable by product can add up to the revenue.
3. Allocated costs: overhead costs are provided to the goods as per the accounting standards. To set price of an additional unit, even an allocated cost can be over ruled.
4. Discretionary cost: costs like employee training and maintenance are such costs that do not cause any harm to the organization if dropped due to some reason. But delaying them could create a negative impact on the finance.
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