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What type of cost is fixed per unit of output and changes with volume of output?
Wiki User
∙ 11y ago
varible?
Wiki User
∙ 11y ago
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If the volume goes up what happens to the fixed cost and profit?
what effect does an increase in volume have on fixed cost per unit
Cost-volume-profit CVP analysis is based entirely on unit costs?
The CVP analysis determines the changes in costs and volume that affects a company's operating income and net income. However it assumes that the sales price, variable costs and the total fixed costs per unit remain constant
A fixed supply means?
A supply such as office paper that has a fixed cost.
What is a fixed cost ratio?
Here's an example - If a company knows that a product costs a certain amount (wholesale) that's a fixed cost. Now, they usually mark up that price three times before they sell it to you. Their fixed cost ratio is 1/3. If they mark it up five times the cost, their ratio is 1/5.
How can you find the variable cost per unit based on fixed cost-year and selling price per unit with volume unit-year?
VC= total cost- fixed cost This formula will not give you the variable cost per unit... you can find VC/unit by high/low method. e.g., no. of units cost 200 7000 300 8000 400 9000 1. select the highest and lowest no. of units (400 and 200)and their costs(9000 and 7000). 2. VC/unit=cost highest no. of products-cost of lowest no. of products/highest no. of products- lowest no. of product 3. VC/unit=9000-7000/400-200 =2000/200 =10
What happens to the value of average fixed cost as the level of output increases?
The average fixed cost is equal to fixed cost divided by level of output, if the output increases; the average fixed cost is less.
What is the relationship between total fixed cost and output?
What is the relation ship between total fixed cost and output?
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 do you calculate fixed cost given total cost and sales volume?
Fixed cost = total cost / sale volume
Why is an Average Fixed Cost curve downward sloping?
This is a simple enough question to answer, Fixed cost is defined as the cost invariant of output, i.e. cost that doesnot change as output increases, i.e. constant. So if you divide a constant by output as a variable, as output increases Average Fixed Costs drop.
What Costs do not vary with output?
fixed cost
What is cost profit volume analysis?
profit(CVP)analysis examines the behavior of total revenues, total costs, and operating income as changes occur in the output level, selling price, variable costs per unit, and /or fixed costs of a product.
Explain variable cost as opposed to fixed cost?
A fixed cost is one that will not change in total due to changes in production volume. An example would be factory rent. No matter how many widgets are produced in that factory, total rent is going to be the same. However, this means that the "per unit" cost changes based on how many widgets are produced. Variable costs, on the other hand, have a fixed per unit price, but total costs change in response to a change in volume. For example, let's say each widget requires $10 of direct labor to produce. Total variable costs is going to change based on how many widgets are produced.
Total variable cost does not increase in proportion to output is it true?
False, it is the fixed cost which is not increased or decreased with proportion to output.
If the volume goes up what happens to the fixed cost and profit?
what effect does an increase in volume have on fixed cost per unit
What causes average fixed cost to decline?
The average fixed cost curve is negatively sloped. Average fixed cost is relatively high at small quantities of output, then declines as production increases. The more production increases, the more average fixed cost declines. The reason behind this perpetual decline is that a given FIXED cost is spread over an increasingly larger quantity of output.
Do fixed and variable costs affect short-run marginal cost?
Fixed costs do not affect short-run marginal cost because they are just that- fixed. They are not dependent on quantity when it changes and does not vary directly with the level of output. Variable costs, however, do affect short-run marginal costs.
