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The cost which is to be incurred even when a business unit is closed is a _____.

The cost which is to be incurred even when a business unit is closed is a _____. Correct Answer shutdown cost

The cost which is to be incurred even when a business unit is closed is a shutdown cost. The shut down price is the minimum price a business needs to justify remaining in the market in the short run.

Related Questions

"It is now expected that the variable production cost per unit and the selling price per unit will each increase by 10%, and fixed production cost will rise by 25%. What will be the new break even point?
Selling price - Rs 6 per unit
Variable production cost - Rs 1.20 per unit
Variable selling cost - Rs 0.40 per unit
Fixed production cost - Rs 4 per unit
Fixed selling cost - Rs 0.80 per unit
Budgeted production and sales for the year are 10,000 units."
The mixing vat in a factory receives liquid ingredients through six separate value--- labeled R.S.T.U,Y and Z -- each of which has exactly two settings: open and closed.The mixing vat operator must ensure that each valve is set open or closed according to the following conditions: If T is open, both S and Z must be closed, R and Z cannot both be closed at the same time; If Y is closed, Z must also be closed;S and U cannot both be open at the same time. If the maximum number of valves that can be closed at the same time are closed which of the following must true?
Which of the following is not an agreement in restraint of trade?
1. A sells the goodwill of his business with an agreement not to carry on a similar business within specified local limits, so long as the buyer carries on a similar business.
2. A sells the goodwill of his business with an agreement not to carry on a similar business within India, so long as the buyer carries on a similar business.
3. A sells the goodwill of his business with an agreement not to practice the same trade for 25 years.
4. A sells the goodwill of his business with an agreement not to engage in any business competing or liable to compete in any way with the business for the time being carried on by the buyer.
The mixing vat in a factory receives liquid ingredients through six separate value--- labeled R.S.T.U,Y and Z -- each of which has exactly two settings: open and closed.The mixing vat operator must ensure that each valve is set open or closed according to the following conditions: If T is open, both S and Z must be closed, R and Z cannot both be closed at the same time; If Y is closed, Z must also be closed;S and U cannot both be open at the same time. If R is closed and U is open, which of the following must be true?
Seven chocolates, A, B, C, D, E, F and G, are bought at different costs between Rs. 40 and Rs. 50 (excluding both Rs. 40 and Rs. 50) but not necessarily in the same order. The cost of chocolate C is Rs. 5 less than that of chocolate E. The cost of chocolate A is a prime number. The cost of chocolate F is Rs. 2 more than that of chocolate A. The cost of chocolate F is more than that of chocolate E. The cost of chocolate D is an odd number. The cost of chocolate G is Rs. 3 more than the cost of chocolate D. None of the chocolates cost Rs. 44. The cost of chocolate B is an even number. What is the cost of chocolate E?
The mixing vat in a factory receives liquid ingredients through six separate value--- labeled R.S.T.U,Y and Z -- each of which has exactly two settings: open and closed.The mixing vat operator must ensure that each valve is set open or closed according to the following conditions: If T is open, both S and Z must be closed, R and Z cannot both be closed at the same time; If Y is closed, Z must also be closed;S and U cannot both be open at the same time. If Z is open, which of the following must be true?
The mixing vat in a factory receives liquid ingredients through six separate value--- labeled R.S.T.U,Y and Z -- each of which has exactly two settings: open and closed.The mixing vat operator must ensure that each valve is set open or closed according to the following conditions: If T is open, both S and Z must be closed, R and Z cannot both be closed at the same time; If Y is closed, Z must also be closed;S and U cannot both be open at the same time. Which of the following, if given to the mixing vat operator as an instruction, would not determine the setting of any other valve ?
"What is the company's breakeven point:
Selling price - Rs 6 per unit
Variable production cost - Rs 1.20 per unit
Variable selling cost - Rs 0.40 per unit
Fixed production cost - Rs 4 per unit
Fixed selling cost - Rs 0.80 per unit
Budgeted production and sales for the year are 10,000 units."
"How many units must be sold if company wants to achieve a profit of Rs 11,000 for the year?
Selling price - Rs 6 per unit
Variable production cost - Rs 1.20 per unit
Variable selling cost - Rs 0.40 per unit
Fixed production cost - Rs 4 per unit
Fixed selling cost - Rs 0.80 per unit
Budgeted production and sales for the year are 10,000 units."
Seven chocolates A, B, C, D, E, F and G are bought at different costs between Rs. 40 and Rs. 50 (excluding 40 and 50) but not necessarily in the same order. The cost of chocolate C is five less than that of chocolate E. The cost of the chocolate A is a prime number. The cost of chocolate F is two more than that of chocolate A. The cost of chocolate F is more than that of chocolate E. The cost of chocolate D is an odd number. The cost of chocolate G is three more than the cost of chocolate D. None of the chocolates costs Rs. 44. The cost of chocolate B is an even number. Which is the following chocolates is costlier than E?