Explain the Difference Between Locked in Costs and Costs Incurred

question 140

Essay

Explain the difference between locked in costs and costs incurred. Which of these types of costs does a traditional accounting system emphasize? At which stage of the value chain are most costs locked-in? At which stage of the value chain are most costs incurred? What implication does this have for good cost management?

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Definitions:

Cerebellum

A major feature of the hindbrain of all vertebrates responsible for motor control, and possibly also some cognitive functions.

Acquired Reflexes

Learned reflex actions that develop as a result of repeated exposure to a stimulus, differing from innate reflexes present at birth.

Biological Clock

An internal mechanism in organisms that controls the timing of various biological functions, such as sleep-wake cycles and hormonal changes.

Daily Rhythms

Natural patterns of activity that follow a roughly 24-hour cycle in living organisms, often referred to as circadian rhythms.