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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 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 does total cost of production include?
Variable Costs and fixed costs
The law of increasing costs means that when an economy increases the production of one item .?
what law of increasing costs means that when an economy increases the production of one item _____.
What Business costs that remain stable regardless of the production level achieved are called?
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 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 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.
What are non production overheads?
Non production overheads are costs associated with the workings of a company. These costs do not go directly into making the item. For example, electricity or office space are non production overheads.
What are the examples of fixed costs?
Fixed Costs are expenses that don't change based on production or sales volumes. They include salaries, rent, insurance, accountancy costs. Variable Costs are expenses that vary based on production volumes. They include material, labor, utilities, and delivery costs
