Final answer:
Costs incurred to support specific products or services are termed product-level or service-level costs. These include average cost, average variable cost, variable costs, and marginal cost, which contrast with fixed costs. Depreciation, explicit, and implicit costs are also essential in understanding the overall costs for a company.
Step-by-step explanation:
Costs incurred to support specific products or services are often called product-level costs or service-level costs depending on the context. When discussing costs on a per-unit basis, the terms average cost, average variable cost, variable costs, and marginal cost are used. These costs are integral in determining the profitability of individual products or services and are contrasted against fixed costs, which do not vary with the level of production or services rendered.
The study of costs involves understanding explicit costs such as wages and rent, which are actual payments made. On the other hand, implicit costs are opportunity costs for using resources the firm already owns, such as the owner's time or using property for business purposes. Depreciation of goods and equipment needed for a company to operate is also considered an implicit cost.
Understanding these costs is crucial for businesses to manage their resources effectively, make informed pricing decisions, and strategize for long-term profitability and growth.