Advertisements
Advertisements
Questions
Distinguish between shut down cost and sunk cost.
Give one difference between shut down cost and sunk cost.
Advertisements
Solution
- Shutdown costs are caused by temporary difficulties, such as a shortage of raw materials, whereas sunk costs result from past decisions that cannot be altered.
- While no work is done during the shutdown, fixed costs must still be paid; in contrast, work is done during the sunk cost period.
APPEARS IN
RELATED QUESTIONS
Write a short note on direct costs.
A firm has to pay a fixed rent of ₹ 500 for the postpaid mobile bill and further pay extra charges for the calls made in a month. Identify the type of cost mentioned here.
Describe cost on the basis of behaviour.
Indirect material scrap is adjusted along with ______.
Overheads are often related to accounting concepts such as fixed cost and ______ cost.
Total variable cost per unit increases ______.
Which cost decreases with increase in the volume of output?
Which definition best describes indirect costs?
Wages paid to a labour who was engaged in the production activities can be termed as ______.
Direct cost increases when ______.
Explain the following:
Sunk cost
Distinguish between controllable and uncontrollable costs.
Distinguish between Direct Labour cost and Indirect Labour cost.
Give an example of opportunity cost.
The term "variable costs" refers to ______.
Fixed cost is a cost which ______.
Amount spent to purchase a machinery is the example of ______ cost.
Classify cost according to its nature.
Explain with an example, the meaning of fixed costs.
