ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Costs are broadly classified into four types: fixed cost, variable cost, direct cost, and indirect cost.

Detailed explanation-2: -Cost accounting involves determining fixed and variable costs. Fixed costs are expenses that recur each month regardless of the level of production. Examples include rent, depreciation, interest on loans and lease expenses.

Detailed explanation-3: -Total Cost Assessment is the consideration of all environmental and health (E&H) costs associated with a decision, including direct costs, risks and liabilities, and costs borne by others. The TCA methodology prompts the user to consider all these costs, but the user may also select a subset of costs to consider.

Detailed explanation-4: -An example of an actual cost is having different expenses associated with manufacturing a product and adding them all together. That is the sum of all direct, indirect, variable, fixed, and sunken costs.