What are costs?

Costs The firm incurs a variety of cost when it produces and we rive these in various ways. One way is to split them into fit(p) cost and variable cost: ·Fixed cost - these atomic number 18 costs that do non metamorphose as the level of move over varies. These include such things as rent, business rates and hostage costs. ·Variable costs - these are costs that do commute as output varies and so will include things peer raw materials, labour costs, energy costs and so on. another(prenominal) really same way to split costs is into acquire costs and indirect costs: ·Direct costs - these are similar to variable costs, and are costs that can be presently attributed to the intersection of each unit of the good. This will therefore be things equal the cost of the raw materials, the packaging, the labour quantify that went into the production (if that can be clearly identified) and so on.

· substantiative costs - these are more commonly known in manage as overheads, and are general costs that are not specifically related to the product. They may be things like merchandise and distribution costs, the cost of secretarial staff, the cost of the exposit (rent and so on) and general bills like phone bills. If you want to get hold a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper