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Explain Administration cost and Pre production costs
Administration cost:
The cost of formulating policy, directing the organization and controlling the operating of an undertaking which is not related directly to a product or a service constitute administration costs.
Pre production costs:
There are those costs which are incurred on making a trial production run prior to the formal production.
MULTIPLE REGRESSION The least square regression equation discussed above was based on the assumption that total cost was determined by only one activity based variable. However
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Correlation coefficient (r) Correlation coefficient measures the degree of association between two variables such as the cost and the activity level. r = nΣxy - Σx Σy
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A firm wants to buy a new machine and the following quotation has been received. Cost of machine US$100 000 Freight and insurance US$5 000 The new machine will last for five
THE BREAK EVEN POINT
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