Why, Cost is not the only criteria for deciding in favour of shut down ?

Question

Why, Cost is not the only criteria for deciding in favour of shut down ?

Follow

Rakesh Sahu asked about 4 years ago

CA Final ca final ama

1 0 Answer Now Comment Report

2 Answers

Important Note – Preparing for CA Final?

CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.

Watch Sample Video Now by clicking on the link(s) below –

CA Final video lectures online & in Pen Drive/ DVD

For any questions Request A Call Back

acharya · Answer 1 · 2016-01-31 14:01:24 UTC

The concept is that if a firm can produce revenue greater or equal to its total variable costs, it can use the additional revenue to pay down its fixed costs. This assumes that fixed costs will still be incurred when a firm shuts down, such as lease contracts or other lengthy obligations. In other words, when a firm can earn a positive contribution margin

narahari · Answer 2 · 2015-11-21 10:31:49 UTC

Interest of workers, if the workers are discharged. It may become difficult to get skilled workers later, on reopening of the factory. Also shut-down may create problems. In the face of competition it may be difficult to re-establish the market for the product.

1.		India's Most Downloaded App cakart.in/cafinal-app
2.		Most Dedicated Telegram Channel t.me/ca_final_icai
3.		Most Active Youtube Channel youtube.com/cakart

Congratulations!

Why, Cost is not the only criteria for deciding in favour of shut down ?

Want to advertise with CAKART?

Want to sell your Video Courses / Books on CAKART?

Congratulations!

Why, Cost is not the only criteria for deciding in favour of shut down ?

CAKART would like to make you Super Knowledgeable!