0
What else can I help you with?
How can one determine the variable cost when given the fixed cost in a business scenario?
To determine the variable cost in a business scenario when given the fixed cost, you can subtract the fixed cost from the total cost. Variable costs are expenses that change based on the level of production or sales, while fixed costs remain constant regardless of production levels. By subtracting the fixed cost from the total cost, you can isolate the variable cost component.
What determines the difference between a variable and a fixed cost?
The relataionship of cost between the level of production is determine the fixed or variable cost if cost change with production level then it is variable cost otherwise fixed cost.
Why variable cost is that it ignore the increasing importance of fixed cost in modern manufacturing?
variable cost ignore the increasing importance of fixed cost in order to determine thecost of production.on computing the cost of production we basing on variable cost because variable cost change as productivity change that we eliminate the fixed cost to determine cost of production.
How do you determine total costs?
Total cost is determined by adding fixed costs and variable costs together. fixed cost + variable cost = total cost
How can one determine the average fixed cost in a business operation?
To determine the average fixed cost in a business operation, divide the total fixed costs by the quantity of output produced. This calculation helps businesses understand the average cost per unit of production that does not change with the level of output.
How to find the average fixed cost in a business?
To find the average fixed cost in a business, you divide the total fixed costs by the quantity of output produced. This calculation helps determine the average cost of producing each unit of output in the business.
What is the relationship between the average fixed cost curve and the overall cost structure of a firm?
The average fixed cost curve shows how fixed costs are spread out over the quantity of goods produced. It is a key component of a firm's overall cost structure, as it helps determine the minimum price at which a firm can produce goods and still cover its fixed costs. The shape of the average fixed cost curve influences the firm's pricing strategy and profitability.
What equation is used to determine total cost?
The equation used to determine total cost is as follows: Total Cost = Fixed Cost + (Average Variable Cost) x Output. The equation to find total cost of a number ("q') of units is: C(q)= 100 + 2q.
When fixed cost treated as relevant cost?
Fixed cost become relevent cost when a particular decision affects the fixed cost of production. For Example: Before Decision fixed cost $100 After Decision Fixed Cost $120 so in this case fixed cost also becomes relevent for decision making.
Is capital a fixed cost?
capital is a fixed cost
Fixed cost variable cost equals?
Fixed cost and variable cost is equal to total cost as per following formula: Total Cost = Fixed Cost + Variable Cost
Select a cost in your industry that is a fixed cost and why is it considered to be a fixed cost?
rental
