GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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fuel payment or electricity bills
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the cost made for certain product
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costs that are non traceable
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the cost that combines profit and loss
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Detailed explanation-1: -An outlay cost is any expenditure made to support an activity. For example, the outlay cost for a research project may include wages, lab supplies and test services. Or, the outlay costs for a production run includes direct materials, indirect supplies, and direct labor.
Detailed explanation-2: -However, the cost of electricity is a variable cost since electricity usage increases with the number of products that are produced or manufactured.
Detailed explanation-3: -Costs are broadly classified into four types: fixed cost, variable cost, direct cost, and indirect cost.
Detailed explanation-4: -For example: Cost of power generation will include cost of fuel such as furnace oil, coal, salaries and wages, consumable stores, repair and maintenance, deprecation and factory overhead. Unit cost is arrived at on the basis of the net aggregate consumption in different departments after adjusting transmission losses.