1.
Incremental cost:
The Incremental cost is that cost which an increases with increase in the level of the production of the company. These cost increases when the number of the units increases in the production.
Whether new tool should be acquired or not
2.
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.
To identify: The changes in the corporation should be accepted or not
3.
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. Here, it can be said that variable cost has the positive relationship with output of production.
To identity: The offer should be accepted or not
4.
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.
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. Here, it can be said that variable cost has the positive relationship with output of production.
To identify: The offer should be accepted or not.
5.
Cost:
The Cost is that amount which is incurred by the producer when producing the product. Producer purchase the raw material and labor to make the product and the amount is paid by the producer to purchase these is the cost for the produce.
Cost of defective item
6.
Cost:
The Cost is that amount which is incurred by the producer when producing the product. Producer purchase the raw material and labor to make the product and the amount is paid by the producer to purchase these is the cost for the produce.
Cost of defective item
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Chapter 11 Solutions
Cost Accounting
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