Advertisements
Advertisements
Questions
Give an example of opportunity cost.
Explain opportunity cost with the help of an example.
Advertisements
Solution
A firm can buy either a laptop or a motorcycle for ₹ 40,000. The firm buys a laptop. The earning or benefit that the motorcycle could provide is the opportunity cost of buying the laptop.
APPEARS IN
RELATED QUESTIONS
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.
Overheads are often related to accounting concepts such as fixed cost and ______ cost.
Total variable cost per unit increases ______.
Which of the following cost is time based?
It refers to the expenses incurred on those items which are not directly chargeable to production. Salaries of timekeeper, foremen and watchmen are examples of this cost. This cost is incurred for the concern as a whole rather than a particular product.
Wages paid to a labour who was engaged in the production activities can be termed as ______.
Which of the following best describes a fixed cost?
Fixed cost is a cost which remains same at ______.
Direct cost increases when ______.
Explain the following:
Sunk cost
Distinguish between controllable and uncontrollable costs.
Distinguish between direct costs and indirect costs.
The term "variable costs" refers to ______.
Fixed cost is a cost which ______.
Fixed cost per unit decreases when ______.
What is meant by variable cost?
Give an example of Semi-Fixed cost.
Write short notes on Variable Costs.
