Why Is "Quality of Life" an Element of Intangible Costs

question 34

Essay

Why is "quality of life" an element of intangible costs associated with location decisions? Provide an example as part of your discussion.

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Definitions:

Revenue

The total amount of money generated by a company through its activities, often from sales of products or services.

Flexible Budget Performance Report

compares actual results to budgeted amounts adjusted for the actual level of output, aiding in the evaluation of financial performance.

Cost Driver

A factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes overhead costs.

Activity Variances

Differences between planned activities (budgeted) and actual activities in management accounting, used for monitoring performance and guiding decisions.