Business Costs and Full Costs


0

Business Costs and Full Costs

Advertisement

Business costs include all the expenses, which are incurred to carry out a business. The concept of business costs is similar to the actual or the real costs. Business costs include all the payments and’ contractual obligations made by the firm together with the book cost of depreciation on plant and equipment. These cost concepts are used for calculating business profits and losses, for filing returns for income tax and for other legal purposes. The concept of full costs, include business costs, opportunity cost and. normal profit. As stated earlier the oppor­tunity cost includes the expected earnings from the second best use of the resources, or the market rate of interest on the total money capital and the value of entrepreneur’s own services, which are not charged form the current business. Normal profit is a necessary minimum earning in addition to the opportunity cost, which a firm must get to remain in its present occupation.

 

 

Advertisement
The following two tabs change content below.
We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to contact@bms.co.in.

Like it? Share with your friends!

0
BMS Team

We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to contact@bms.co.in.

47 Comments

Ask Us On WhatsApp
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format