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Cost of IT to a business

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Inveralmond chs

on 3 October 2012

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Transcript of Cost of IT to a business

Cost of IT to a business Fixed and Variable
costs there are two types of cost to a
business, one being 'fixed'
and the other, 'variable'.Fixed costs are
those costs you incur which do not increase (or decrease) from you selling one more unit of your product or service
Variable costs or direct costs are those that increase if you sell one more unit of your product or service. Indirect and Direct costs Direct costs are costs that can be easily traced
to a particular object
Direct costs are often, but not always, variable costs. Variable costs increase as more units of the product are manufactured
Indirect costs are those which affect the entire company, not just one product. They are costs like advertising, general supplies for your firm, accounting services, etc Equipment operating costs In the case of a piece of equipment or facility it is the usual recurring costs of operating the equipment. This does not include the capital cost of constructing or purchasing the equipment
Cost to a Business By Eilidh, Alice& Ryan
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