Question
Question 1 Complete the following sentences by matching the definitions with the correct terms: square v is a cost that has an element of both fixed and variable costs. square v is a cost that can be identified with a specific cost unit,to the extent that the effect of the cost can be measured in respect of that cost unit. square v is an example of a direct cost. square is an example of a fixed cost. square v is the cost incurred when one co course of action prevents an opportunity to derive some benefit from another course of 10 p
Answer
4.1
(273 Votes)
Cecil
Professional · Tutor for 6 years
Answer
1. Semi-variable cost2. Traceable cost3. Direct material cost4. Rent5. Opportunity cost
Explanation
## Step1: The term that denotes a cost that has an element of both fixed and variable costs is Semi-variable cost. This cost contains capacity-related (fixed cost) and usage-related (variable cost) components that have systematic patterns of increase or decrease.## Step2: The form of cost that can be identified with a specific cost object such that the effect of the cost can be measured in respect of that cost unit is Traceable cost. These costs are directly assignable to a specific segment of an organization without any arbitrary allocation method.## Step3: One common example of a direct cost is Direct material cost. It relates directly to the particular object and it is directly traceable.## Step4: An example of a fixed cost can be Rent. This cost does not vary with the volume of output and is, therefore, considered a fixed cost.## Step5: The cost incurred when one course of action prevents the benefit derived from another course of action is called Opportunity cost. It is the cost of foregoing the opportunity to generate additional profit or benefit from potential actions.