Understanding some basic concepts - organisational context, stakeholders, services/activities and resources - and how they fit together is a great starting point for understanding digital curation costs these concepts provide a basis not only for evaluating your own organisation, but also for comparing your organisation's. Cost concepts, inc construction consultants 104 bedell place melville, ny 11747 tel 6314237960 fax 6314237963 e-mail [email protected] Let us understand that economic efficiency of any firm operating in the market is determined by the ability of the firm to minimize its costs and maximize its profits we also need to understand that cost is a function of output as the output of a firm changes the cost pattern of a firm also undergoes change. The historical cost concept is a basic accounting concept read on to know more about the advantages and disadvantages of the historical cost. The historical cost concept (also known as cost principle of accounting) states that the assets and liabilities of a business should be presented in accounting records at their historical cost historical cost is the amount that is originally paid to acquire the asset and may be different from the current market value of the asset. Ideal costs are incurred under ideal working conditions it means that certain operating results are obtained due to abnormal conditions these results are favorable to the management in other words, the plant is working at more than normal capacity level some costs are incurred under this condition these costs are. The term prudent cost concept refers to a process that allows accountants to place a value on an asset that is different than historical cost. The purpose of this study was to explore and describe the knowledge of student nurses regarding the cost concepts in health economics, specifically the efficient allocation of resources and determining the cost of interventions, in order to prepare them to deliver cost-effective yet quality nursing care an explorative and.
One of the most important tools in cost planning is a a direct cost b b budget c c cost sheet d d marginal costing 3 the purpose of financial accounting is to provide information for — a a fixing prices b b cost control c c locating factory leading to wastages and losses d d assessing the. This topic covers about the cost concepts like implicit and explicit cost, economic, avoidable and unavoidable cost. Cost concepts and items of costcost is the value of the factors of production used in producing and distributing goods and services the cost of a factor unit equals the maximum amount which the factor could earn in alternative employment concept means idea underlying or general motion. Benefit cost concepts and the limitations of ecec measurement by thomas g moehrle, john l bishow, and anthony j barkume bureau of labor statistics originally posted: july 26, 2012 data on the benefits portion of employer costs for employee compensation (ecec) can be used in conjunction with published.
Many business decisions require a firm knowledge of several cost concepts different types of costs have differing characteristics consequently, when reviewing a business case to determine which path to take, it is useful to understand the following cost concepts: fixed, variable, and mixed costs a fixed cost, such as rent,. Fixed cost concepts for power generation print in most industrialized countries, electric power is provided by generating facilities that serve a large number of customers these generating facilities, known as central station generators, are often located in remote areas, far from the point of consumption the economics of. Cost concept analysis 1 the cost concepts that are relevant to business operation and decisions can be grouped on the basis of their nature and propose under to overlapping categories:- 1 cost concept used for accounting propose 2 analytical cost concepts and used in economic analysis of business. Levelized product cost: concept and decision relevance stefan reichelstein stanford university anna rohlfing-bastian universität tübingen we are grateful to seminar participants at bocconi university, university of alberta, carnegie mellon university, city university of new york, university of mannheim, university of.
Cost concepts and behavior learning objectives after reading this chapter, you should be able to: lo 2-1 explain the basic concept of “cost” lo 2-2 explain how costs are presented in financial statements lo 2-3 explain the process of cost allocation lo 2-4 understand how material, labor, and. Elementary cost accounting notes 107 basic cost concepts accountancy term cost is used in this very form in reference to production/manufacturing of goods and services cost refers to sum total of the value of resources used like raw material and labour and expenses incurred in producing or manufacturing of.
1, chapter 9 – basic cost concepts problem 1: solution 1 taxable income tax rate $0 - $20,000 10% $20,000 - $50,000 $2,000 + 20% of the amount over $20,000 $50,000 $8,000 + 30% of the amount over $50,000 first $20,000 × 10 = $ 2,000 next $30,000 × 20 = $ 6,000 next $10,000 × 30 = $ 3,000 total. In this unit, we shall discuss some important cost concepts that are relevant for managerial decisions we analyse the basic differences between these cost concepts and also, examine how accountants and economists differ on treating different cost concepts we will continue the discussion on cost concepts and analysis. Cost concepts for control robert n anthony professor, harvard university t he framework your cost concepts committee used to state concepts re- lating to control is somewhat uncon- ventional, and some background about our deliberations may help to explain why we finally decided on this framework.
Accounting is concerned with past events and it requires consistency and comparability that is why it requires the accounting transactions to be recorded at their historical costs this is called historical cost concept historical cost is the value of a resource given up or a liability incurred to acquire an asset/service at the time. 1 required reading 2 management accounting 21 developments in management accounting 22 cost concepts and classification 221 types of costs 23 cost classifications 231 functional cost classification 3 management accounting - cost flows 31 cost flows - manufacturing organisations. In microeconomic theory, the opportunity cost, also known as alternative cost, is the value (not a benefit) of the choice of a best alternative cost while making a decision a choice needs to be made between several mutually exclusive alternatives assuming the best choice is made, it is the cost incurred by not enjoying the.
Cost concepts in economics costs ´ influential factor on the supply side expenditure incurred for various factors of production. Detailed explanation of cost concepts in micro economics. Financial and cost concepts for construction management [daniel w halpin] on amazoncom free shipping on qualifying offers designed for engineering students in upper-level courses of construction management or cost control, this text provides a thorough grounding in all aspects of financial management so that. Did you liked this video lecture then please check out the complete course related to this lecture, cost accounting a comprehensive study with 280+ lectures.