Examlex
The purchase of real assets is also referred to as the:
Opportunity Cost
The value of the best alternative foregone as a result of making a decision, representing the benefit that could have been gained from the next best choice.
Fixed Manufacturing Cost
This refers to the consistent expenses incurred by a company for its manufacturing operations, excluding variable costs; it includes costs like rent, salaries of permanent staff, and depreciation of factory equipment.
Variable Manufacturing Cost
Costs that vary directly with the level of production output, such as raw materials and direct labor.
Idle Capacity
The portion of a company's resources or production capacity that is not being used for production or generating revenue.
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