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Essay

Cost Accounting

Essay specific features

 

Issue:

Miscellaneous

 

Written by:

Sandra Y

 

Date added:

August 1, 2012

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 723

 

Was viewed:

8348 times

 

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Essay content:

A fixed cost is a cost that is independent of a firm’s output level. In the short run, all firms have fixed costs even if the firm is producing nothing. There are no fixed costs in the long run. Below is the graph for fixed cost: Fixed cost graph The first example of a fixed cost for a car manufacturer introducing a new engine is the cost of insuring the factory that is used to manufacture the new engine...
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Insurance for the company is actually a promise of compensation for specific potential future losses in exchange for a periodic payment. Insurance for a factory is designed to protect the financial well-being the company in the case of unexpected loss. Agreeing to the terms of an insurance policy creates a contract between the insured and the insurer...
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