MGMT 302 Lecture Notes - Lecture 2: Fixed Cost, Variable Cost, European Cooperation In Science And Technology

• School: UBC Okanagan, UBC OK
• Department: Management
• Course: MGMT 302
• Professor: Tamara Ebl

Document Summary

Direct and indirect costs: direct costs, costs that can be easily and conveniently traced to a unit of product or other cost object, example: direct material and direct labour. Indirect costs: costs that cannot be easily and conveniently traced to a unit of product or other cost object, example: manufacturing overhead, example of direct and indirect costs: Differential costs and revenues: costs and revenues that differ among alternatives, example, you have a job paying ,500 per month in your hometown. You have a job offer in a neighboring city that pays ,000 per month. The commuting cost to the city is per month. Note on relevant costs: every decision involves a choice from among at least two alternatives, only those costs and benefits that differ between alternatives (i. e. differential costs and benefits) are relevant in a decision. All other costs and benefits can and should be ignored.