Question

How do you define the term Cost? Discuss about Cost Classification based on Variability and Controllability. Provide real examples of such costs in the real world.

Answer 1

Cost 9t genirally that s mmy Value of wed le praduue Smething lo to duheur Serwiie DŁ Ps nd auciloble tiY se any more ft haes been Consumed is the monetary value of effst mate aial e so urces ete All expenaes are coste re Cxpenses but not all ods bud not punh asing an asset ts a ost an expenditure depre ciation that asset es an oxpenditure Based on vauiabi lity osts are diutdad tnto These arre cf that VOriab le CoeA£ vay wth valume of proelution mitres of cloth fs or07uired to make a ghirt. hers the cost rs amof cloth you houe to purcha to make (O० १hics Quo metre of cloth Fiud cosy These are the osts that do not with the aume of produ hm Dnt to make vey took h रडि Shirt Inespecfive of Shixts you have to TOom ymr produttion 0f nt Prod Ared and Semi fixad per Hly (3 Variable किवली ES Elachialy chees felsphane apus

Contrallability Basedl Cmbrollable' costs These Costs an be conballad by the influene andl ach mofa (hember Specihral Aduerhsing this ost i tncurred tf ouiredl un Contrallable costs Thesecosts an not Coolled by en athun Co) tafluanue be Rent, Saluries ote