Business operating cost Presented by M.Abinaya 115011013915 All Rights reserved. Not for distribution. Single user license
Business operating costPresented by
M.Abinaya 115011013915
All Rights reserved. Not for distribution. Single user license
FORMULA:operating cost=cost of goods-
operating expenses
B.Tech(ECE 2nd yearM.Abinaya
BUSINESS OPERATING COST
Business operating cost comes under operation cost
It is resource used to maintained existing
INCLUCTION OF EQUIPMENT COST
Salary or wages
Personal costs
Raw materials
Unissued losses
Advertisement cost
1
2
3
4
5
Business operating cost:Cost of buying ,equipment,
damageIt is stable no one cannot
change this costIt do not varying with the
companies level of production.
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Fixed cost Variable cost Semi-variable cost
Types of costs
Type of costing
Actual cost
Opportunity costIncremental cost
Fixed cost:Fixed cost is stable cost.
Variable cost:It varies the cost the profit
will give the profit to company.
Semi variable:Raw material cost depends on the demand on products
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CONCLUSIONEconomics decision making for
engineering system.It is the study of industrial economicsIt deals with justification and selection
of project.
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