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externalising costs of production means to move product out from your company to sub contractor (other companies) and pay then to do the job. In many cases large manufacturing companies (like car manufacturers) will find engineering companies to make may of the parts i.e. the nuts and bolds used to hold body work together rather than did it them selves because if they need to slim down the production they just done order so mush and save money if it were created in the business they would still have plant, machinery and staff standing idle but still having to pay
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What term describes production costs that change the output?
The term that describes production costs that change with the level of output is "variable costs." Unlike fixed costs, which remain constant regardless of production levels, variable costs fluctuate based on the quantity of goods or services produced. Examples include costs for raw materials, labor, and utilities that increase as production ramps up.
What of the following is the most direct cause of cost push inflation?
Rising production costs.
What would lead to an increase in the increase in the inflation rate?
Rapidly rising production costs
What is the impact of changes in the marginal cost of labor on a company's overall production costs?
Changes in the marginal cost of labor can significantly impact a company's overall production costs. When the marginal cost of labor increases, it can lead to higher production costs for the company as they have to spend more on labor. Conversely, if the marginal cost of labor decreases, the company's production costs may decrease as well. This relationship between labor costs and production costs is crucial for companies to consider when making decisions about their workforce and production processes.
What does total cost of production include?
Variable Costs and fixed costs
What are production costs?
Production costs are costs to produce
What things do variable costs include?
Variable costs vary depending on a company's production. Production, or output, and costs are included in variable costs. Production and costs are directly related.
Which ratio shows an organizations effectiveness in minimizing production costs?
There are two measures of production costs: total costs and marginal costs. The relevant ratio depends on which of these is being minimised.
What is an example of lower production costs brought about by the use of technology?
what is an example of lower production costs brought about by technology
What of the following is the most direct cause of cost push inflation?
Rising production costs.
What would lead to an increase in the increase in the inflation rate?
Rapidly rising production costs
What is the impact of changes in the marginal cost of labor on a company's overall production costs?
Changes in the marginal cost of labor can significantly impact a company's overall production costs. When the marginal cost of labor increases, it can lead to higher production costs for the company as they have to spend more on labor. Conversely, if the marginal cost of labor decreases, the company's production costs may decrease as well. This relationship between labor costs and production costs is crucial for companies to consider when making decisions about their workforce and production processes.
What does total cost of production include?
Variable Costs and fixed costs
Are selling costs variable costs?
If selling costs varies with production level then selling costs are variable costs but if they remain fix then these are fixed costs.
What are the examples of variable cost?
Variable costs are expenses that change in direct proportion to the level of production or sales. Examples include raw materials, direct labor costs associated with production, and sales commissions. Other examples can include utility costs that vary with usage and shipping costs tied to the volume of goods sold. These costs increase as production rises and decrease when production falls.
What drives up the production costs such as celebrities?
Production costs for the Super Bowl are indeed driven up by celebrity fees. Also, the costs are driven up by the player fees.
Is fixed costs is a period costs?
Yes normally fixed costs are period costs because these costs have to be paid no matter production done or not.
