Asked by: Ashwani Avigaalasked in category: General Last Updated: 11th May, 2020
What is specific cost?
In this regard, what is specific cost of capital?
Cost of capital refers to the opportunity cost of making a specific investment. It is the rate of return that could have been earned by putting the same money into a different investment with equal risk. Thus, the cost of capital is the rate of return required to persuade the investor to make a given investment.
One may also ask, what is the specific method? Definition: The specific identification method, also called specific invoice inventory pricing, is a technique used to assign cost to identifiable inventory. In other words, this is a way to value inventory by allocating costs to individual goods when they are purchased and received.
Moreover, what are the 4 types of cost?
DIFFERENT WAYS TO CATEGORIZE COSTS
- Fixed and Variable Costs.
- Direct and Indirect Costs.
- Product and Period Costs.
- Other Types of Costs.
- Controllable and Uncontrollable Costs—
- Out-of-pocket and Sunk Costs—
- Incremental and Opportunity Costs—
- Imputed Costs—
What is debt cost?
The cost of debt is the effective interest rate a company pays on its debts. It's the cost of debt, such as bonds and loans, among others. The cost of debt often refers to after-tax cost of debt, which is the company's cost of debt before taking taxes into account.