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
If indirect labor change with the change of units of product then indirect labor is a variable cost. If change in the quantity of units has no impact on indirect labor cost then it is a fixed cost.
Step Cost remains fixed for certain range of expense and then increases while variable cost change with change in every unit of product.
raw material cost variable cost because it change with volume of product i.e. the more you produce the more you have to purchase for raw material. Fixed cost are never change with changing in volume.Raw Material Cost is variable 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.
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
Variable cost: The cost change with the change in activity is called variable cost. So as much fuel used cost increased accordingly so it is variable cost.
fixed cost will not change with the change in output variable cost will change with chang in output
It's a variable cost, as it changes with the change in activity level
Direct labor is variable cost as it varies with the change in level of production of units.
Variable costs are different in this sense that fixed cost remains fixed and it has no impact of change in production level while variable cost changes with the change in production level.
Fixed cost is that cost which remains fixed and don't change with change in production level. Variable cost is that cost which varies with change in production level. Mixed cost is that cost which have both the elements, some portion of fixed cost while some portion is variable cost.
If indirect labor change with the change of units of product then indirect labor is a variable cost. If change in the quantity of units has no impact on indirect labor cost then it is a fixed cost.
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.
Step Cost remains fixed for certain range of expense and then increases while variable cost change with change in every unit of product.
Direct labor is variable cost as well as product cost but for variable cost it must vary with the change in production level otherwise it will be fixed cost.
raw material cost variable cost because it change with volume of product i.e. the more you produce the more you have to purchase for raw material. Fixed cost are never change with changing in volume.Raw Material Cost is variable cost