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In general, yes, they would be - along with wood or aluminum, upholstery if that is the kind of furniture you make. Think of it this way if your whole company in a year made 1 chair - how much material would you need to get it done. If you then got an order for 100 chairs, you would have to buy more material to build those chairs. Whatever you had to buy to build the chairs is a variable cost. It varys based on orders.
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What things do variable costs include?
Variable costs vary depending on a company's production. Production, or output, and costs are included in variable costs. Production and costs are directly related.
Can total revenues and total variable costs be exactly equal?
Yes. Actually this means the company has zero gross profit. If on top of variable costs, there are fixed costs, the company will turn a loss.
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.
What are examples of fixed and variable cost in an airline company?
Some of the Variable costs are Fuel Cost, energy, and operating cost
When should a company shut down in short run?
when price is less then average variable costs !
Are variable costs included in operating costs?
Variable operating costs + fixed operating costs = total operating costs.
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 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.
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.
Under variable costing variable selling and administrative costs are included in product costs?
No. They are not.they are part of period costs.
What is a good company that makes modern outdoor furniture?
There are several websites you can use when comparing costs and quality of outdoor furniture. Some of the better sites to use for this are www.lowes.com and www.homedepot.com.
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.
