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If delivery cost changes with the number of units of product sold then it is variable cost.

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11y ago

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How would you describe a variable cost?

There are a number of costs that vary or change, but if the variation is not due to volume changes, it is not considered to be a variable cost.


Examples of semi variable direct costs?

An example of semi variable direct costs is wages. Since semi variable costs are partially fixed and variable, regular labor is fixed costs, as production rises and workers have overtime the overtime is considered the variable cost.


What is the the variable costs plus the fixed costs?

Type your answer here... fixed cost + variable cost = total cost


How do you determine total costs?

Total cost is determined by adding fixed costs and variable costs together. fixed cost + variable cost = total cost


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.


What is cost What is the difference between total cost and average cost?

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.


What is happening to average variable costs when they equal marginal costs?

When average variable costs equal to the average marginal cost, the average variable cost will be at the minimum point. i.e. lowest cost


How does Decrease in material costs impact total variable costs?

If material cost is variable cost then yes by decreasing material cost company can reduce total variable cost.


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 is the difference between base cost and variable cost?

You don't fire variable costs


Is variable cost a relevant cost?

No. If a variable cost does not differ between alternatives than it is irrelevant.


Are all direct costs variable?

Direct Cost are those costs that can be directly assigned to a production process. Indirect cost were those costs that cannot be directly assigned to production process but have to allocate to production. Variable costs are those costs that vary directly with the production level. Only Direct cost could be variable . But not all direct cost are variable. Thus direct cost contains both Variable and Fixed elements while indirect costs contains only fixed element.