The level of competition in the market
Posted: Wed Jan 22, 2025 10:30 am
For example, a company pays rent for premises, buys equipment and materials, and pays employees' salaries. The amount of costs depends on: Volumes of production. The more goods or services a company produces, the higher its production costs. Efficiency and cost-effectiveness of technologies. For example, automation of processes reduces production costs and thus reduces expenses.
. If competitors are strong, the price of the product may fall. The volume hong kong telegram data of taxation. Thus, the company, in addition to the personal income tax and insurance premiums, has to pay land tax, because the land on which the enterprise is located is its property. There is another type of costs in management accounting - alternative costs.
And this is not about expenses. Alternative costs are lost profits due to downtime or choosing one of the areas of activity. For example, a vacuum packer at a meat processing plant broke down, and the equipment did not work for three days. The lost margin for the period when they could not ship finished products is alternative costs.
. If competitors are strong, the price of the product may fall. The volume hong kong telegram data of taxation. Thus, the company, in addition to the personal income tax and insurance premiums, has to pay land tax, because the land on which the enterprise is located is its property. There is another type of costs in management accounting - alternative costs.
And this is not about expenses. Alternative costs are lost profits due to downtime or choosing one of the areas of activity. For example, a vacuum packer at a meat processing plant broke down, and the equipment did not work for three days. The lost margin for the period when they could not ship finished products is alternative costs.