Cost Concept and Management Needs Homework Help

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A cost is a measurement for finding the value of a product. It signifies the aspects a product including its quality. A cost is the measure through which the business prospers by investments and revenue. They can be categorized in many ways such as manufacturing and non-manufacturing costs, direct and indirect costs etc. in this Cost concept and management Needs homework Help article we discuss the cost concept from the management point of view.

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Various Cost Concepts


In this article for Cost concept and management needs homework Help the various cost concepts are defined below

1. Fixed variable and mixed costs: an unchangeable cost parameter such as rent or taxes. It is inevitable in nature.
2. By product costs: any extra product concluded along with the main product in a joint production process is called a by-product. Understanding the activity volumes for occurrence of by product cost is the main theme for this Cost concept and management Needs homework Help article.
3. Allocated costs: usually overhead costs that are provided to manufactured goods.
4. Discretionary costs: no short term harm is done to the organization when this cost is dropped. Employee training and maintenance can be that cost.
5. Step costs: addition of a production shift can be an example as a step has been added to the already existing process and hence it adds extra cost to the production. Management need to understand the power of their decisions on the consequences.

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