Depreciation of manufacturing equipment is fixed cost because that cost will incurred no matter how much units produced.
It is considered as fixed overhead cost because it doesn't dependant on level of production
Depreciation is a fixed cost because variable cost is that cost which change with the change in the production units but it doesn't put any effect on depreciation as depreciation of the equipment will remain same no matter you produce maximum number of units or produce no unit in fiscal year.
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.
Variable cost = Total Cost/ fixed cost
fixed and variable
Depreciation of manufacturing equipment is fixed cost because that cost will incurred no matter how much units produced.
Fixed cost and variable cost is equal to total cost as per following formula: Total Cost = Fixed Cost + Variable Cost
its a fixed cost
It is considered as fixed overhead cost because it doesn't dependant on level of production
Depreciation is a fixed cost because variable cost is that cost which change with the change in the production units but it doesn't put any effect on depreciation as depreciation of the equipment will remain same no matter you produce maximum number of units or produce no unit in fiscal year.
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.
variable
Type your answer here... fixed cost + variable cost = total cost
Variable cost = Total Cost/ fixed cost
it is obviously variable
No, Janitorial Cost is not a variable cost, it is a Fixed Cost.