Flashcards: Comprehensive Cost Analysis and Decision-Making — 9 cards

Fixed costs — definition?

Expenses that remain constant regardless of output.

Fixed costs — definition?

Expenses that remain constant, regardless of output.

Variable costs — role?

Change directly with production volume.

Variable costs — role?

Costs that change directly with production levels.

Sunk costs — definition?

Irrelevant costs already incurred, non-recoverable.

Opportunity costs — role?

Value of best alternative foregone.

Recurring costs — difference?

Ongoing costs like rent, salaries.

Non-recurring costs — example?

One-time costs such as equipment purchase.

Life cycle cost — meaning?

Total cost over a product's lifespan.