Costs Costs

7 Oct No Comments

Costs1.Opportunity cost.

Dell company.

The company intents to make an investment. The company initially had a choice between Mexico and Brazil but chose Brazil. In this case the opportunity cost is the cost of the forgone opportunity, which is the cost of investing in Mexico.

2.Long term costs.

Article in the wall street journal.

Soft bank to buy fortress Investment  group for$3.3 billion.

This is  a long term costs as whose implication is for a long term asset.

3.Information costs.

Costs of advertising

For example the cost of Dell making it public the intentions of investing in Brazil.

4.Short-term costs.

The costs of buying computer parts for dell company .

5.Accounting costs.

The total operating expense for a company.

For example in Dell’s financial statement of 2012 the expense costs were  $13682

These are part of accounting costs.

6.Transaction costs.

This is the costs of carrying out business.

Example

The cost of  Coca-cola company organizing and acquiring the SAP-Enterprise resource planning system. The costs of transaction include costs of order placing,

7. Historical costs. The costs incurred by the Southwest airline to acquire the other airlines like the west-jet airline. This transaction occurred longtime ago and is therefore an historical cost.

Coordination costs.

They are costs of running daily business. They include salaries to managers and supervisors.

They are administrative costs

Reference 

The wall street journal.

https://www.google.com/finance?fstype=ii&q=NASDAQ:DELL




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