Adam Park, Social Science Teacher at Senioritis.io

Adam Park
June 21, 2023
Finance

Maximizing Business Efficiency: Understanding and Managing Administrative Costs

Administrative costs All executive, organizational, and clerical costs associated with the general management of an organization rather than with manufacturing or selling. Administrative costs refer to any...

Adam Park
June 21, 2023
Finance

Understanding Committed Fixed Costs in Business: Examples and Importance

Committed fixed costs Investments in facilities, equipment, and basic organizational structure that can’t be significantly reduced even for short periods of time without making fundamental changes. Committed...

Adam Park
June 21, 2023
Finance

Understanding Common Costs: How Proper Allocation Can Help Maximize Business Profits

Common cost A cost that is incurred to support a number of cost objects but that cannot be traced to them individually. For example, the wage cost...

Adam Park
June 21, 2023
Finance

Understanding Conversion Costs in Manufacturing for Better Profit Margins and Efficiency

Conversion cost Direct labor cost plus manufacturing overhead cost. Conversion costs refer to the cost of converting raw materials into finished goods. These costs include direct labor...

Adam Park
June 21, 2023
Finance

Maximizing Profit: The Importance of Differential Cost in Decision-Making.

Differential cost A difference in cost between two alternatives. Differential cost, also known as incremental cost, is the difference in cost between two alternative courses of action...

Adam Park
June 21, 2023
Finance

Understanding Direct Costs: Definition and Examples in Product and Service Delivery

Direct cost A cost that can be easily and conveniently traced to a specified cost object. Direct cost is a type of expense that can be traced...

Adam Park
June 21, 2023
Finance

Maximizing Profits: Strategically Managing Discretionary Fixed Costs for Business Growth

Discretionary fixed costs Those fixed costs that arise from annual decisions by management to spend on certain fixed cost items, such as advertising and research. Discretionary fixed...

Adam Park
June 21, 2023
Finance

Understanding Fixed Costs in Business: A Guide to Identifying and Managing Expenses for Improved Profitability

Fixed cost A cost that remains constant, in total, regardless of changes in the level of activity within the relevant range. If a fixed cost is expressed...