0
Directly variable cost means that which cost is directly related with the number of production of units of products.
Example:
For example if material amounting 10 is required to produce 1 product unit then total material amount of 100 will be required to produce 10 units of product in this case 10 is the variable cost per unit and 100 is the variable cost for 10 units of product.
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
Are variable cost are always indirect cost?
No. Variable cost is the same as direct cost because it can be varied directly to the cost centre or cost unit,while indirect cost can't be varied directly to it cost centre or cost unit.
As output increases total variable costs?
If the output increases, so will the variable cost. Though, variable cost is not directly proportionate to the output, still it will witness an incline.
How segregate the semi variable cost?
In semi variable cost :variable cost = change in cost/change in output then with that rate * output = variable cost semi variable cost - variable cost = fixed cost
What is the difference between sales price and variable costs?
Sales price is the price at which unit of product is sold while variable cost is that cost of unit which in manfuacturing process varies with change in level of production directly.
Is janitorial cost a variable cost?
No, Janitorial Cost is not a variable cost, it is a Fixed Cost.
Are variable cost are always indirect cost?
No. Variable cost is the same as direct cost because it can be varied directly to the cost centre or cost unit,while indirect cost can't be varied directly to it cost centre or cost unit.
As output increases total variable costs?
If the output increases, so will the variable cost. Though, variable cost is not directly proportionate to the output, still it will witness an incline.
Are all costs variable?
Direct Cost are those costs that can be directly assigned to a production process. Indirect cost were those costs that cannot be directly assigned to production process but have to allocate to production. Variable costs are those costs that vary directly with the production level. Only Direct cost could be variable . But not all direct cost are variable. Thus direct cost contains both Variable and Fixed elements while indirect costs contains only fixed element.
Are all direct costs variable?
Direct Cost are those costs that can be directly assigned to a production process. Indirect cost were those costs that cannot be directly assigned to production process but have to allocate to production. Variable costs are those costs that vary directly with the production level. Only Direct cost could be variable . But not all direct cost are variable. Thus direct cost contains both Variable and Fixed elements while indirect costs contains only fixed element.
Variable cost can always be traced directly to the cost object?
No, because varible cost can be direct or indirect cost. Direct cost can always be traced directly to a cost object, but not indirect cost. For example, sales commission.
How do you calculate the variable cost per unit?
Variable cost is cost that varies with amount of production. In order to classify this cost, you must be able to decide if the cost can be directly related to the product. If it can, then calculate the total cost then divide it by the number of units produced.
How segregate the semi variable cost?
In semi variable cost :variable cost = change in cost/change in output then with that rate * output = variable cost semi variable cost - variable cost = fixed cost
What is the difference between sales price and variable costs?
Sales price is the price at which unit of product is sold while variable cost is that cost of unit which in manfuacturing process varies with change in level of production directly.
Marginal versus variable costing?
Variable cost refers to the TOTAL variable cost of all units, whereas marginal cost is the variable cost of the last unit only. Variable cost is the sum of all the individual marginal costs. The derivative of the Variable Cost is the Marginal Cost. The integral of the Marginal cost is the Variable Cost.
In a scientific study the variable that is influenced by another variable is known as?
When a variable is directly influenced by another variable it is known as a dependent variable. Conversely, a variable that isn't directly affected by another variable is known as a independent variable.
Is janitorial cost a variable cost?
No, Janitorial Cost is not a variable cost, it is a Fixed Cost.
Is the depriciation cost is variable cost?
yes..depreciation cost is the variable cost..
