What are costs?

Costs The firm incurs a variety of cost when it produces and we snag these in various ways. One way is to split them into fixed cost and variable cost: ·Fixed cost - these ar costs that do non metamorphose as the level of go through varies. These include such things as rent, business rates and surety costs. ·Variable costs - these atomic number 18 costs that do parti-color as output varies and so will include things make up raw materials, labour costs, energy costs and so on. some other really same way to split costs is into count costs and indirect costs: ·Direct costs - these are similar to variable costs, and are costs that can be presently attributed to the intersection of each unit of the good. This will indeed be things ilk the cost of the raw materials, the packaging, the labour sequence that went into the production (if that can be clearly identified) and so on.

· substantiative costs - these are more commonly known in manage as overheads, and are general costs that are not specifically related to the product. They may be things like merchandise and distribution costs, the cost of secretarial staff, the cost of the set forth (rent and so on) and general bills like phone bills. If you want to ask a full essay, order it on our website: OrderCustomPaper.com

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