Question

Distinguish between money cost and real cost. Also give an example of each

Answer 1

Answer:

Real" cost implies an accumulation of various kinds of costs to attain the total costs while "Money" cost is the production cost expressed in monetary terms

Answer 2

Money cost:

Money cost is also recognized as the nominal cost. It is nothing but the expenses experienced by a firm to yield a commodity. For example, the cost of producing 200 chairs is Rs. 10000, and then it will be entitled the money cost of creating 200 chairs.

Real cost:

Real cost is the overall actual expense elaborate in generating a good or service for sale to consumers. The real cost of manufacture for a business typically comprises the value of all tangible assets such as raw materials and labor that are used in the manufacturing process.

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