
1.
Operating Income:
The outcome after deduction of operating expense and
Operating income.
2.
Opportunity Cost:
Opportunity cost is total of potential income and other benefits that are lost due to rejection of alternatives. These costs are considered to evaluate the multiple project or options available.
Variable Cost:
The variable cost is that cost which varies with increase or decrease in the level of production. The variable cost of per unit remains same. It can be said that variable cost has the positive relationship with output of production.
Fixed Cost:
The fixed cost is that cost which does not change with increase or decrease in the level of the production, but per unit fixed changes with change in the level production. Examples of the fixed cost are rent, wages and insurance.
The amount of relevant cost saved by using released facilities.

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Chapter 11 Solutions
Cost Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText -- Access Card Package (15th Edition)
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