Cost concepts

Cost concepts

Bachelor of Business Studies (BBS) — First Year

Subject: Microeconomics for Business (MGT 207)

Unit 6: Cost and Revenue Curves

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of cost concepts.
• Explain the economic reasoning and use appropriate diagrams or relationships in business analysis.

Curriculum Scope

• Cost function
• Implicit and explicit costs
• Accounting and economic costs
• Historical and replacement costs
• Separable and common costs
• Opportunity cost

Detailed Microsyllabus

1. Cost functions and perspectives

   1. Explicit and implicit costs.
   2. Accounting cost and economic cost.
   3. Opportunity cost and decision relevance.

2. Additional cost concepts

   1. Historical and replacement costs.
   2. Separable and common costs.
   3. Classify business expenditures under the appropriate cost concept.

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Curriculum reference: Tribhuvan University, Faculty of Management, BBS curriculum with first-year syllabus, PDF pages 17-19.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit lecture hours apply to the whole unit; no separate topic hours or marks are assigned here. The programme subject list identifies this course as MGT 207; the detailed subject heading in the source prints MGT 203.