, COSI
✗
""
" X
Implicit X
EM -1
Direct → " Indirect cost ← Minimum
Normal
W
Expenditure Expenditure prints profits
For which Estimated Value that amount
firm
•
the
•
•
of inputs provided of profit
makes
payment to
which the
Outsiders by owner
-
•
It is recorded in the •
No made to producer
payment
must to
books of accounts outsiders Not recorded
get
-
.
continue the
Accounting in
cost books accounts
*
of
• Non
accounting cost / production
Notional cost /
Estimated cost .
Economic Cost : -
Explicit cost -1
Implicit cost -1 Normal profit
.
Variable cost
+ which
vary
with the level of output
.
→
Associated with variable
factors of production .
materials
Ex Cost
of raw
wages
→
.
: -
,
Fixed lost : -
Which remain same on level of output
every
→
.
→
Associated with fixed factors of production .
→ Ext Rent -
.
✗
""
" X
Implicit X
EM -1
Direct → " Indirect cost ← Minimum
Normal
W
Expenditure Expenditure prints profits
For which Estimated Value that amount
firm
•
the
•
•
of inputs provided of profit
makes
payment to
which the
Outsiders by owner
-
•
It is recorded in the •
No made to producer
payment
must to
books of accounts outsiders Not recorded
get
-
.
continue the
Accounting in
cost books accounts
*
of
• Non
accounting cost / production
Notional cost /
Estimated cost .
Economic Cost : -
Explicit cost -1
Implicit cost -1 Normal profit
.
Variable cost
+ which
vary
with the level of output
.
→
Associated with variable
factors of production .
materials
Ex Cost
of raw
wages
→
.
: -
,
Fixed lost : -
Which remain same on level of output
every
→
.
→
Associated with fixed factors of production .
→ Ext Rent -
.
