"Cost." A hard concept to pinpoint. The fixed cost for stamping coffee mugs with swear words on them was a million bucks. Each mug's basic elements...the clay, the 5 minutes of labor to set it up, the electricity for the kiln...all in: 3 bucks.
But wait. Is 3 bucks the unit cost? What happened to the million dollar fixed cost for the factory to make and produce and distribute those mugs? Doesn't the cost of the factory get striated as unit cost? Sure, it does. If the company makes a million mugs while the factory is working, it cost a buck a cup, ignoring the finance costs. If they only do 100,000 mugs, it was 10 bucks a unit in factory costs, ignoring finance costs.
Yeah, that's the theme. The company could have done other things with that million bucks. Of note, the general stock market has gone up about 10% a year for the last 150-ish years. So think: $100,000 a year in capital cost on that million bucks. That's how it rolls.
So what swear word goes on the mug with those numbers, other than "Dayum"?
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Cost Accounting: What is a Cost: Cost Ve...1 Views
And finance Allah shmoop what is a cost as in
a cost versus and expensive Shmoop think about life as
a grand tradeoff You decided Teo really go for it
and fulfill your dream of becoming a figure skater for
your shining fifteen minutes of fame in the Olympics and
a few years of you know Disney on Ice afterwards
And that well you spent eighty hours a week for
a decade on the better part of your youth on
the ice spinning and twirling and doing that infinity thing
From age eight to twenty you spent the most precious
resource You had time dedicated to the mission of winning
an Olympic gold medal being the best skater you could
be and pretty much ignoring everything else While that time
the time you spent skating was a cost you had
a precious resource your time and you spent it all
pretty much on the ice You could have spent the
same amount of time learning how to code in Java
or C plus plus and or swift If you like
doing the iPhone app that's the language they use Or
you could've spent it mastering chemistry and biology and a
mission to cure cancer Or you could have spent it
mastering the meaning of the meaning of the meaning of
things and been a lawyer defending the rights of the
poor the downtrodden and the innocent But no you spent
your resource is on the ice Big cost They're hoping
for audience applause and some kind of satisfaction for having
landed on your feet Well that allocation of your precious
resource your time was a cost What's the ultimate cost
opportunity cost Yeah like you for went the opportunity of
being a cancer cure or a defender of the poor
the downtrodden or ah the next Mark Zuckerberg to instead
be skater So cost is a sacrifice of resource is
cost is a philosophy and event not necessarily even tracked
It's kind of a commitment to one thing over another
right So that's cost on what's expense Well not nearly
so Pete Those laden inhuman in a kind of sad
and expenses just in accounting structure where the dollar value
of some cost is calculated and then subtracted from what
are hopefully revenues Teo upset it expenses Just a line
item on an income statement with numbers It's not where
dreams go to die Or uh maybe just held out
for a while to be revisited later in life or 00:02:22.333 --> [endTime] being put you know on ice
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