Long-Term Costs Example

It is called as long-term cost, at costs focused on inputs that allow the subsequent implementation of projects.

The long-term costs They allow changes of direction within companies as well as the realization of new projects.

Long-term cost example:

A clothing company "Confecciones Clementina S.A de C.V" has contracted a 5000 square meter property, which has a cutting and sewing plant, as well as distributors.

Due to a change of address, it was decided to make the change of residence, renting a location that carries a consumption in spending 75% less than the previous place, reduced the positions of the workers by 30%, changing without problems the turns.

In a year and a half, he decided to hire a larger location again, for which they redirected long-term costs to make the projected change.

Long-term costs allowed these changes to be made, since there are no terms or obligations that cannot be postponed, and the modifications may be planned in relation to the supplies and procedures of the company.