Advertisements
Advertisements
Questions
"The cost of sugarcane is an avoidable cost." Justify for or against.
“The cost of sugarcane is an avoidable cost.” Justify for or against and give a reason.
Give Reasons
Justify
Advertisements
Solution
- If sugarcane is a direct input for sugar production, the cost is directly proportional to the output.
- When production ceases, the cost of sugarcane can be avoided.
- Avoidable costs are those that can be avoided by refraining from carrying out a specific activity or choice.
- Purchasing sugarcane is unnecessary when shutting down sugar production; hence, the cost can be avoided.
- This makes sugarcane costs preventable because they may be managed by deciding whether or not to manufacture sugar.
shaalaa.com
Controllable and Uncontrollable Costs
Is there an error in this question or solution?
APPEARS IN
RELATED QUESTIONS
‘Abnormal costs are not recorded as part of production cost.’ Justify for or against.
Give one difference between money cost and real cost.
Distinguish between implicit costs and explicit costs.
Give one difference between product cost and period cost.
Explain the following with an example:
Marginal cost.
Explain the following with an example:
opportunity cost.
Explain the following Concept:
Out of Pocket Cost
Explain the following:
Differential cost
Explain the following:
Notional or imputed cost.
Explain the following:
Replacement cost
