If delivery cost changes with the number of units of product sold then it is 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.
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.
Type your answer here... fixed cost + variable cost = total cost
Total cost is determined by adding fixed costs and variable costs together. fixed cost + variable cost = total 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.
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.
When average variable costs equal to the average marginal cost, the average variable cost will be at the minimum point. i.e. lowest cost
If material cost is variable cost then yes by decreasing material cost company can reduce total variable cost.
Total Costs = Fixed Cost + Variable Cost soVariable Cost = Total Costs - Fixed Cost.
You don't fire variable costs
No. Total cost includes fixed costs, too. Even Semi Variable costs include Fixed costs...??? So whats the difference?
No. If a variable cost does not differ between alternatives than it is irrelevant.