Cost Concepts Such as Variable, Fixed, Mixed, Direct, and Indirect

question 94

True/False

Cost concepts such as variable, fixed, mixed, direct, and indirect apply only to manufacturers and not to service companies.

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Definitions:

Intangible Capital

Non-physical assets possessed by a company, such as intellectual property, brand names, and organizational knowledge that contribute to the company's value.

Tangible Capital

Physical assets owned by a firm that are used in the production process, such as buildings and machinery.

Goodwill

An intangible asset that represents the value of a company's brand name, customer relationships, employee relations, and other non-physical assets.

Human Capital

The stock of habits, knowledge, social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value.