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 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 is an example of a direct cost. v square is an example of a fixed cost. square v is the cost incurred when one course of action prevents an opportunity to derive some benefit from another course of action. 10 pts
Answer
4.3
(287 Votes)
Zachary
Master · Tutor for 5 years
Answer
1. Semi-variable costs2. Direct cost3. Direct Labor4. Rent5. Opportunity cost
Explanation
## Step 1:The term **Semi-variable costs** are costs that have an element of both fixed and variable costs. These costs are partially fixed and vary with the level of production to an extent.## Step 2:A cost that can be identified with a specific cost unit, where the effect of the cost can be measured in respect of that cost unit, is referred to as a **Direct cost**. Examples include direct labor and raw materials which would change with the scale of production.## Step 3:**Direct labor** is an excellent example of a direct cost. This cost changes in direct correlation to the amount of production. For example, if more units are to be produced, then more labor hours would need to be worked.## Step 4:**Rent** is a classic example of a fixed cost. It is not affected by the level of production as it remains the same regardless of the volume of units produced.## Step 5:The cost incurred when one course of action prevents an opportunity to derive some benefit from another course of action is called an **Opportunity Cost**. It is the cost of foregoing the benefits of the next best alternative when a decision is made.