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Is this true that total costs are equal to fixed cost plus variable cost per unit?
Wiki User
∙ 7y ago
No fixed costs do not change where variable do depending on market and amount ordered among other varies.
Wiki User
∙ 7y ago
Wiki User
∙ 9y agoYes, formula for total cost as follows:
Total Cost = Fixed Cost + Variable Cost
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What are examples of total costs?
In a perfectly competitive market, all n firms are equal. Thus, the market total cost is the total cost (TC) of one firm multiplied by the amount of n firms in the market Total Market Cost =Variable Costs and fixed costs ...Fixed costs plus variable costs.
Is total cost equals semi variable cost?
No. Total cost includes fixed costs, too. Even Semi Variable costs include Fixed costs...??? So whats the difference?
What are the principles of break even analysis?
To calculate your break even point you need to total your fixed costs and your variable costs (separately) . The equation is fixed costs ÷ (price - variable costs). Variable costs are your costs associated with production. If u produce one additional unit variable cost will increase and fixed costs will not. When you reach your break even point you have covered all if your fixed costs (for the month, for example). All units sold after break even will bring net income for the period since your fixed costs are covered.
What is the break even revenue if total fixed costs are 2160000 and variable costs are 3000000?
Breakeven revenue is the amount required to make $0 profit once total fixed and variable costs have been deducted so the answer is 2160000 + 3000000 = $5160000
When using a flexible budget a decrease in activity within the relevant range does what?
I wanted to get this answered more fully, and correctly. Decreasing variable costs per unit is just wrong. When speaking of variable vs fixed costs, it means in total. A variable cost stays the same per unit, but as volume changes, the total variable costs increase and decrease. (Unless something specifically mentions there's a change per unit.) A fixed cost is fixed in total regardless of volume. But fixed per unit increases and decreases with volume changes. In order for variable and fixed to have their proper meanings, you have to think about them as total costs. For example, if I buy a certain shirt for $7 and sell it for $15, those are variable. They stay the same per unit and I gross $8 per shirt (called contribution margin). The more I sell, the more sales revenue I have and the more variable cost I have -- two shirts will have $7x2 ($14) of variable costs etc. If my fixed costs are $100,000, that will remain fixed regardless of how many of anything I sell. An example of a fixed cost is rent. If activity decreases, total variable costs will decrease, but not per unit variable costs. Total costs also decrease, but that's not complete. And fixed per unit increases, because you don't have as much volume to spread the fixed costs over.
How do you determine total costs?
Total cost is determined by adding fixed costs and variable costs together. fixed cost + variable cost = total cost
Can total revenues and total variable costs be exactly equal?
Yes. Actually this means the company has zero gross profit. If on top of variable costs, there are fixed costs, the company will turn a loss.
How do you calculate your variable cost and fixed cost given total costs and sales volumes?
Total Costs = Fixed Cost + Variable Cost soVariable Cost = Total Costs - Fixed Cost.
What are examples of total costs?
In a perfectly competitive market, all n firms are equal. Thus, the market total cost is the total cost (TC) of one firm multiplied by the amount of n firms in the market Total Market Cost =Variable Costs and fixed costs ...Fixed costs plus variable costs.
What is the the variable costs plus the fixed costs?
Type your answer here... fixed cost + variable cost = total cost
What are total cost of production examples?
In a perfectly competitive market, all n firms are equal. Thus, the market total cost is the total cost (TC) of one firm multiplied by the amount of n firms in the market Total Market Cost =Variable Costs and fixed costs ...Fixed costs plus variable costs.
Are variable costs included in operating costs?
Variable operating costs + fixed operating costs = total operating costs.
What does total cost of production include?
Variable Costs and fixed costs
Total cost is the sum of the?
fixed and variable costs
Is total cost equals semi variable cost?
No. Total cost includes fixed costs, too. Even Semi Variable costs include Fixed costs...??? So whats the difference?
What is the difference between average total costs and average variable costs?
Average total cost is the average of all your costs. This is your Fixed Costs and your Variable costs. Average Variable Cost is the average of your costs that can fluctuate.
The total cost is the sum of what?
When you see TC = Total Costs on a break even chart it stands for Variable, Semi-variable and fixed costs....thus the total cost.
