Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 15: Problem 10

Discuss the different types of parameters that are used in cost functions. Where is this information kept?

Short Answer

Expert verified
Cost functions include two general parameters - fixed costs and variable costs, and specific parameters like production capacity, technology, economies of scale and cost of inputs. This information is stored in a company's accounting or management information system and in various financial and operations reports.

Step by step solution

01

Identify General Parameters

In cost functions, parameters generally identify the fixed and variable costs. Fixed costs are costs that do not change with the levels of production output, like rent or salaries. Variable costs change with the levels of output, such as raw materials or direct labor costs.
02

Discuss Specific Parameters

Other specific parameters might include production capacity, technology, economies of scale, and the price of inputs. These parameters further influence and determine the function of cost with respect to output levels.
03

Explain storage of cost function parameters

The information about parameters used in cost functions is typically stored within a firm's accounting or management information system. It can also be found in regular cost, financial, and operations reports. This information is crucial for guiding managerial decisions.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

How many different join orders are there for a query that joins 10 relations?

Discuss the cost components for a cost function that is used to estimate query execution cost. Which cost components are used most often as the basis for cost functions?

Can a nondense index be used in the implementation of an aggregate operator? Why or why not?

How does a query tree represent a relational algebra expression? What is meant by an execution of a query tree? Discuss the rules for transformation of query trees, and identify when each rule should be applied during optimization.

Extend the sort-merge join algorithm to implement the left outer join operation.
See all solutions

Recommended explanations on Computer Science Textbooks

Data Structures

Read Explanation

Computer Network

Read Explanation

Game Design in Computer Science

Read Explanation

Computer Programming

Read Explanation

Big Data

Read Explanation

Algorithms in Computer Science

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free