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“Selling costs may be defined as costs necessary to persuade a buyer to buy one product rather than another or to pay from one seller rather than another.” Meyers. Assumptions: Basically, the concept of selling cost is based on the following two assumptions: 1. Buyers do not have any perfect knowledge about the different types of product. 2.
Department of Economics Christian Zimmermann Fall 2004, Intermediate Macroeconomics, section 3/4 ECON 219 Symbols and abbreviations used BC Budget constraint CPI Consumer Price Index GDP Gross Domestic Product GNP Gross National Product HH Household MB Marginal benefit MC Marginal cost MP Marginal product MRS Marginal rate of substitution
Economic cost is used by an economist. Total cost: Total cost is the total expenditure incurred by the producer to produce his goods. Total cost is also the summation of total fixed costs and total variable costs. Total cost is evaluated as follows:- 1. Total Cost = Cost per unit x Quantity Produced 2.
There are many examples of costs that are variable with respect to the products and services provided by a company. In a merchandising company, variable costs include such items as cost of goods sold, commissions to salespersons, and billing costs. In a hospital,
COST AND SALES CONCEPTS • LEARNING OBJECTIVES • After reading this chapter, you should be able to: 1. Define the terms cost and sales . 2. Define and provide an example of the following types of costs: fixed, directly variable, semivariable, controllable, noncontrollable, unit, total, prime, historical, and planned. 3.
6 Αυγ 2018 · Differentiate between the following: accounting and economic costs, real and nominal cost, private and social cost, sunk and incremental cost. c. Appreciate the necessity of proper...
Total revenue is calculated by price x quantity sold. It is the revenue received from the sale of a given level of output. When price is constant, TR is as shown in the diagram. Prices are lowered to achieve higher sales. Marginal revenue: This is the extra revenue a firm earns from the sale of one extra unit.
