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

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.

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.

Why it is sometimes difficult to separate costs into variable costs and fixed costs?

Some costs are semi-variable, e.g. electricity, maintenance, and rise with output but not in proportion. Labour may be fixed in the short run.

What is on overhead?

Overhead refers to the cost of a business in a particular period. Specifically, overhead points to fixed and indirect costs. They are non-labor costs. Non-labor costs are variable or fixed. Rent and salaries are examples of fixed costs. Advertising and supplies are variable costs.

What is the example of simi variable costs?

A simi-variable cost has both variable and fixed factors. An organization's telephone and electric costs are simi- variable. These costs are fixed. However, if more electricity is used, or more telephone calls are made in a given period, they become variable.

Fixed costs are those costs which are?

Fixed costs are assigned to all products. Variable costs are assigned only to the product that led to the cost.

What does total cost of production include?

Variable Costs and fixed costs

How do you determine total cost?

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

Why is it important to separate variable and fixed costs?

it is important to separate variable and fixed costs. Another reason it is important to separate these costs is because variable costs are used to determine the contribution margin, and the contribution margin is used to determine the break-even point.

Are all direct cost are variable?

Yes generally direct costs are variable costs but there may be some direct costs which can be fixed costs as well.

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.

Is direct material and labor a fixed cost?

If direct material and direct labor remains fixed irrespective of production volume then these are fixed costs otherwise these are variable costs and normally these are variable costs because it varies with the production volume.

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?

Is direct labor a variable or fixed costs?

Variable. Jessica Nichole Sims

What are examples of Variable Cost?

Variable costs are costs that varies or are not fixed. Those are expenses that change in proportion to the activity of a business. Examples are: raw materials (when the activity is decreased, less raw materials are used), transportation costs. However, its distinction as variable or fixed may vary on different organizations or situations. A salary of a regular employee is fixed, while salary of an hourly employee is variable. Some expenses also have fixed and…

What is the importance of fixed costs versus variable costs in making a business profitable?

The importance of knowing which costs are fixed and which costs are very important in making a business profitable. In order to budget effectively, one needs to know costs that will always be the same (fixed) and the ones that sometimes change (variable).

What does fixed and variable costs mean?

itmeans that you have to die

Total cost is the sum of the?

fixed and variable costs

What are Fixed and variable costs in the workplace?

fixed cost will not change with the change in output variable cost will change with chang in output

How can Fixed costs become variable costs?

fixed cost can become the variable coat because when the commodity meets so many competitors in the market it would become the variable cos in other for consumers to purchase it.

Are selling expenses fixed or variable cost?

selling expenses is a mixed costs. it is a mixture of both fixed and variable components. for example, in selling expenses in a retail shop; fixed costs are the employees salary. while variable cost will be their commission or bonus of the sale.

How do fixed costs and variable costs apply to the airline industry?

Fixed costs: Rent of buildings, lease payments, maintenance of property, insurance, utilities. Variable costs: Fuel, salary of crew, passenger refreshments, costs related to ground handling, etc.

What is fixed cost and variable cost?

Fixed costs are costs that DO NOT change in response to changes to activity levels. Variable costs are costs that change in proportion to changes in volume or activity. It's simple, you just have to remember: Fixed cost: Total - DO NOT change Per unit -CHANGES (usually, decrease) Variable cost: Per unit - SAME Total -CHANGES

Which costs may have both variable and fixed components?

Labor. Fixed rate for hours planned; variable rates for unscheduled overtime.

Can direct costs display a fixed or variable behavior pattern?

Yes direct cost may be a fixed or variable cost or both.

Difference between semi variable costs and semi fixed costs?

a semi fixed cost moves upward in a step where semi variable cost begining at a given base level

Fixed costs are those costs which are what?

Fixed and do not change. A variable cost changes. Fixed costs are things like rent, salaries, or any other cost that does not change over time.

How can manager decrease variable costs while increaseing fixed cost?

This is generally done in areas such as manufacturing where processes can be more automated. By investing in machines and facilities, the fixed costs will increase, but variable labor costs will decrease.

How do you calculate variable cost?

Variable cost = Total Cost/ fixed cost