Costs

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…

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…

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…

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…

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…

T2F is a university café owned an operated by a student. While it has plans for expansion it currently offers two products: (a) tea &…

Cost allocation (also called cost assignment) is the process of finding cost of different cost objects such as a project, a department, a branch, a…

The costs of production A business needs accurate and reliable cost information to make decisions. A firm that is aiming to expand production to meet…