What is the between Total fixed cost and total variable cost? In the short run factors of production are in the nature of fixed and variable. The total cost of production includes total fixed and total variable factors.
Short period: Various types of short-run cost curves explained. Short period is a period of time which is not sufficient enough to allow supply to be fully adjusted with the increased demand. In short-period certain inputs can't be increased or decreased.
The essential features, which a good Cost Accounting System should possess, are as follows: Cost Accounting System should be tailor-made, practical, simple and capable of meeting the requirements of a business concern.
As in the case of every other form of activity, it should be considered whether it would be profitable to have a cost accounting system. The benefits from such a system must exceed the amount to be spent on it.
Important advantages of a Cost Accounting System may be listed as below : A good Cost Accounting System helps in identifying unprofitable activities, losses or inefficiencies in any form.
The main objectives of Cost Accounting are as follows : (i) Ascertainment of cost, (ii) Determination of selling price, (iii) Cost control and cost reduction, (iv) Ascertaining the profit of each activity, (v) Assisting management in decision-making.
A cost-push inflation is the one in which price rise is initiated and sustained by increasing prices of inputs or similar other causes. In economic theory, an increase in money rates is mentioned as the main reason of an increase in production costs.