Commerce Exam > Commerce Questions > Money costs meana)Money expenditure on purcha...
Start Learning for Free
Money costs mean
- a)Money expenditure on purchase of goods from the factory
- b)Money spent by the consumers
- c)Money expenditure of a producer in the production process
- d)Money expenditure on output
Correct answer is option 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Money costs meana)Money expenditure on purchase of goods from the fact...
Money costs refer to the expenses incurred by a producer in the production process. These costs are essential for the smooth functioning of a business and are essential for the calculation of profits.
Heading: Types of Money Costs
- Fixed Costs: These are costs that do not vary with the level of production. For example, rent, salaries of permanent staff, insurance premiums, etc.
- Variable Costs: These are costs that vary with the level of production. For example, raw materials, electricity bills, wages of temporary staff, etc.
- Semi-Variable Costs: These are costs that are partly fixed and partly variable. For example, telephone bills, transportation costs, etc.
Heading: Importance of Money Costs
- Calculation of Profits: Money costs are subtracted from total revenue to calculate profits. Therefore, it is important to accurately calculate these costs.
- Pricing Decisions: Money costs play a crucial role in determining the selling price of goods or services. If the costs are too high, the selling price will have to be increased.
- Budgeting: Money costs help in creating a budget for the business. This helps in identifying areas where costs can be reduced and profits can be maximized.
Heading: Examples of Money Costs
- Raw Materials: This includes the cost of the materials used in the production process.
- Labor Costs: This includes the salaries and wages paid to the employees.
- Overhead Costs: This includes expenses such as rent, utilities, insurance, etc.
- Marketing Costs: This includes expenses incurred in advertising and promoting the product or service.
- Depreciation: This includes the reduction in value of assets over time.
In conclusion, money costs are essential for the smooth functioning of a business. They help in calculating profits, making pricing decisions, and creating budgets. These costs include raw materials, labor costs, overhead costs, marketing costs, and depreciation.
Heading: Types of Money Costs
- Fixed Costs: These are costs that do not vary with the level of production. For example, rent, salaries of permanent staff, insurance premiums, etc.
- Variable Costs: These are costs that vary with the level of production. For example, raw materials, electricity bills, wages of temporary staff, etc.
- Semi-Variable Costs: These are costs that are partly fixed and partly variable. For example, telephone bills, transportation costs, etc.
Heading: Importance of Money Costs
- Calculation of Profits: Money costs are subtracted from total revenue to calculate profits. Therefore, it is important to accurately calculate these costs.
- Pricing Decisions: Money costs play a crucial role in determining the selling price of goods or services. If the costs are too high, the selling price will have to be increased.
- Budgeting: Money costs help in creating a budget for the business. This helps in identifying areas where costs can be reduced and profits can be maximized.
Heading: Examples of Money Costs
- Raw Materials: This includes the cost of the materials used in the production process.
- Labor Costs: This includes the salaries and wages paid to the employees.
- Overhead Costs: This includes expenses such as rent, utilities, insurance, etc.
- Marketing Costs: This includes expenses incurred in advertising and promoting the product or service.
- Depreciation: This includes the reduction in value of assets over time.
In conclusion, money costs are essential for the smooth functioning of a business. They help in calculating profits, making pricing decisions, and creating budgets. These costs include raw materials, labor costs, overhead costs, marketing costs, and depreciation.
Free Test
FREE
| Start Free Test |
Community Answer
Money costs meana)Money expenditure on purchase of goods from the fact...
Yes in my opinion the option ic is correct
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Top Courses for CommerceView all
Money costs meana)Money expenditure on purchase of goods from the factoryb)Money spent by the consumersc)Money expenditure of a producer in the production processd)Money expenditure on outputCorrect answer is option 'C'. Can you explain this answer?
Question Description
Money costs meana)Money expenditure on purchase of goods from the factoryb)Money spent by the consumersc)Money expenditure of a producer in the production processd)Money expenditure on outputCorrect answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Money costs meana)Money expenditure on purchase of goods from the factoryb)Money spent by the consumersc)Money expenditure of a producer in the production processd)Money expenditure on outputCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Money costs meana)Money expenditure on purchase of goods from the factoryb)Money spent by the consumersc)Money expenditure of a producer in the production processd)Money expenditure on outputCorrect answer is option 'C'. Can you explain this answer?.
Money costs meana)Money expenditure on purchase of goods from the factoryb)Money spent by the consumersc)Money expenditure of a producer in the production processd)Money expenditure on outputCorrect answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Money costs meana)Money expenditure on purchase of goods from the factoryb)Money spent by the consumersc)Money expenditure of a producer in the production processd)Money expenditure on outputCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Money costs meana)Money expenditure on purchase of goods from the factoryb)Money spent by the consumersc)Money expenditure of a producer in the production processd)Money expenditure on outputCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Money costs meana)Money expenditure on purchase of goods from the factoryb)Money spent by the consumersc)Money expenditure of a producer in the production processd)Money expenditure on outputCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Money costs meana)Money expenditure on purchase of goods from the factoryb)Money spent by the consumersc)Money expenditure of a producer in the production processd)Money expenditure on outputCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Money costs meana)Money expenditure on purchase of goods from the factoryb)Money spent by the consumersc)Money expenditure of a producer in the production processd)Money expenditure on outputCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Money costs meana)Money expenditure on purchase of goods from the factoryb)Money spent by the consumersc)Money expenditure of a producer in the production processd)Money expenditure on outputCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Money costs meana)Money expenditure on purchase of goods from the factoryb)Money spent by the consumersc)Money expenditure of a producer in the production processd)Money expenditure on outputCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Money costs meana)Money expenditure on purchase of goods from the factoryb)Money spent by the consumersc)Money expenditure of a producer in the production processd)Money expenditure on outputCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup