Sales (10000 * 12) = 120000
Less: Fixed Cost = 40000
Less: Depreciation = 8500
Less: Variable Cost = 65000 (Balancing Figure)
---- PBIT = 6500
Variable Cost per unit = 65000/10000 = 6.5 per unit
Units-of-production
depreciation is classed as a fixed cost when using only the straight line method. reducing balancing method is classed as a variable cost.
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.
Depreciation of manufacturing equipment is fixed cost because that cost will incurred no matter how much units produced.
taxes, insurance, depreciation supplies, utilites and repairs
Units-of-production
yes..depreciation cost is the variable cost..
depreciation is classed as a fixed cost when using only the straight line method. reducing balancing method is classed as a variable cost.
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.
A variable is usually assumed to represent an unknown quantity. You don't need to "do" anything special to your variable.
A variable is usually assumed to represent an unknown quantity. You don't need to "do" anything special to your variable.
choosing
mathematicschoosing a variable to represent an unknown quantity
The answer is variable
According to my text book, depreciation is a Fixed cost
define
The variable "I" in algebra can represent any unknown quantity or value. It is commonly used to represent interest in mathematical equations related to finance or economics. However, "I" can refer to any unknown in an equation and its meaning depends on the specific context in which it is used.