Costs - QS Study
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What is Manufacturing costs and non-manufacturing costs?

Costs may be classified as manufacturing costs and non-manufacturing costs. This classification is usually used by manufacturing companies. Manufacturing costs: Manufacturing costs can be further......

What is Differential Cost?

Differential cost is the difference between the cost of two alternative decisions, or of a change in output levels.  The concept is used when there......

What is Committed Cost?

A committed cost is an investment that a business entity has already made and cannot recover by any means, as well as obligations already made......

What is Manufacturing Cost Accounting?

Manufacturing cost accounting encompasses several tasks that impact production operations and the valuation of inventory. These activities can significantly boost the profits of a business,......

What is Job Costing System?

A job costing system involves the process of accumulating information about the costs associated with a specific production or service job. This information may be......

What is Total Cost?

Total cost is defined in three ways, depending on whether you are engaged in cost accounting, investments, or capital budgeting. In general, it is the......

What is Cost Benefit Analysis?

Cost benefit analysis involves the weighing of the costs associated with a decision against the benefits arising from that decision. The analysis is used to......

What are the Difference between Fixed Costs and Variable Costs?

The difference between fixed and variable costs is that fixed costs do not change with activity volumes, while variable costs are closely linked to activity......

Explain Cost Classification?

Cost classification involves the separation of a group of expenses into different categories. A classification system is used to bring to management’s attention certain costs......

What are the Difference between Product Costs and Period Costs?

The key difference between product costs and period costs is that products costs are only incurred if products are acquired or produced, and period costs......

Is Depreciation a Fixed Cost or Variable Cost?

Depreciation is a fixed cost, because it recurs in the same amount per period throughout the useful life of an asset. Depreciation cannot be considered......

What is the Difference between Direct Costs and Indirect Costs?

The essential difference between direct costs and indirect costs is that only direct costs can be traced to specific cost objects. A cost object is......

How to Calculate Weighted Average Cost of Capital?

Weighted average cost of capital (WACC) is the average after tax cost of a company’s various capital sources, including common stock, preferred stock, bonds and......

What is Weighted Average Cost of Capital?

The weighted average cost of capital (WACC) is a compilation of the aggregate financing cost of a business, where each element of its financing cost......

Total Cost Formula Explanation

The total cost formula is used to derive the combined variable and fixed costs of a batch of goods or services. The formula is the......