Business Accounting and Bookkeeping

How do you calculate your variable cost and fixed cost given total costs and sales volumes?

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Answered 2016-08-30 16:58:10

Total Costs = Fixed Cost + Variable Cost soVariable Cost = Total Costs - Fixed Cost.

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What are the examples of fixed costs?

Fixed Costs are expenses that don't change based on production or sales volumes. They include salaries, rent, insurance, accountancy costs. Variable Costs are expenses that vary based on production volumes. They include material, labor, utilities, and delivery costs

Can you calculate the fixed cost variable costs and break-even point for the program suggested in Appendix D?

Calculate the fixed cost, variable costs, and break-even point for the program suggested in Appendix D.

Are manufacturing costs fixed variable or mixed?

fixed and variable

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.

Variable costs are relevant and fixed costs are irrelevant?

Generally variable costs are relevant costs but if due to any decision fixed costs are also going to affected then fixed costs are also relevant costs.

How do you calculate fixed costs?

Fixed Cost - costs that do not vary with the quantity of output produced.The best example I can think of is when making Chocolate Chip Cookies. You need ingredients and supplies to make them:Chocolate Chips (Variable Cost)Flour (Variable Cost)Butter (Variable Cost)Sugar (Variable Cost)Eggs (Variable Cost)Vanilla (Variable Cost)Baking Soda (Variable Cost)Salt (Variable Cost)Bowls (Fixed Cost)Spatulas (Fixed Cost)Oven (Fixed Cost) The gas or electricity would be a variable costBaking Sheet (Fixed Cost)Cooking Rack (Fixed Cost)Mixer (Fixed Cost)Fixed Costs do not vary with Quantity. Variable Costs do vary with Quantity.

How do you calculate the fixed cost per unit?

Learn to study your Business Studies curriculum properly. The fixed cost is the same regardless of the number of units produced. The variable costs are the costs of producing x number of units. The break-even point is where value of sales = fixed costs + variable costs.

How many types of cost?

There are variable and fixed costs. Businesses can manipulate the variable costs, but they cannot change their fixed costs in business.

What is the the variable costs plus the fixed costs?

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

How do you calculate fixed and variable cost of various products?

First of all total cost of product is identified and after that using high and low method variable and fixed costs are segregated

What is fixed costs plus variable costs?

Total costs.

Is Janatorial Costs a fixed mixed or variable cost?

The three types of cost you are referring to are Fixed, Semi Variable and Variable Costs. On a well though out COA the janitorial costs would fall under administrative costs. Thus fixed.

Are variable costs included in operating costs?

Variable operating costs + fixed operating costs = total operating costs.

Examples of fixed costs and variable costs in hospital?

Fixed Costs: Salaries Variable Costs: Medicines, ambulance fuel, paper, "CEO & friends"benefits package.

How do you calculate breakeven point?

breakeven point (units) = fixed costs/contribution contribution = selling price - variable costs per unit

How do variable costing and absorption costing differ?

Variable costing refers to that type of costing in which only variable costs (manufacturing & non manufacturing) are taken to calculate the profit . Whereas absorption costing taken both fixed and variable costs.

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.

Fixed costs and variable costs in a florist shop?

a fixed cost would be electricity bills and a variable costs would be paying employees a salary not wayes !

Is electricity a fixed cost?

It can be either a fixed or a variable costAs a fixed costA fixed cost is one that will not vary due to a change in production volumes or just volumes of a product in general. When electricity is charged at fixed cost for the plant or premises then it can be termed fixed cost. This is because no matter how many products you will sell or produce, the cost of electricity will not change.As a variable costA variable cost is one that varies or changes with the change in production volumes or sales volumes. When electricity is charged due to the consumption then its value will change with the volumes sold or produced therefore is treated as a variable cost

Are selling costs variable costs?

If selling costs varies with production level then selling costs are variable costs but if they remain fix then these are fixed costs.

What are semi variable direct costs?

They are costs that involve an element of both fixed and variable costs eg a telephone bill involves line rental (fixed) plus cost for calls made (variable)

How do I split the mixed costs into their fixed and variable components using a scatter graph?

You can split the mixed costs into the fixed and variable components using a scatter graph by assigning the fixed variable to the x axis and the variable component to the y axis.

Please can you tell me whether labor costs may be both fixed and variable costs?

Labor cost can be fixed as well as variable. That labor which varies with changes in level of production then it is variable cost but if labor remain fixed then it is fixed cost.

What are a business firm's fixed and variable costs of production?

Fixed costs are costs that do not vary with the level of output, such as rent and insurance premiums. Variable costs are costs that change with the level of output, such as wages and raw materials.

What does total cost of production include?

Variable Costs and fixed costs

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