Budgeting
Budgeting
It is very important for the management of the production or manufacturing business to identify the nature of the costs and expenses to maximize the profits of the business. In a manufacturing business, the management must utilize their labor and machines to minimize the idle time. Moreover, the main expenses of the business such as, rent of the factory and utility bills are those fixed expenses that must be recovered from the proper activity level of the production. Therefore, in these circumstances, the costs which are already incurred are called the sunk costs of the business and the ...
