What Does Capacity Cost Mean?
Answer / bjanmejai
A fixed expense incurred by a company
or organization in order to provide for
or increase its ability to conduct
business operations. Capacity costs
generally do not vary with production
levels and can be reduced or avoided
only by shutting down business locations
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6, state with reasons wheather the following items are capital expenditure or revenue expenditure i, A factory building was constructed at a cost rs 1500000 a sum of rs 64000 were incurred for the construction of huts for storing building materials ii, rs 5000 paid for removal of stock to a new site iii, expenses incurred in connection with obtaining a license to start the business were rs 15000
payment voucher for advance salary
Outstanding Expenses are the examples of
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