they are both inportant, because they both burn your money.
Semi-variable costs, as we all know, are costs that both has a fixed and variable costs in it. Semi-variable costs though vary in any way, in does not move in direct proportion with sales and/or any productive activity. The fixed portion of these types of expenses can readily be established/identified, but the variable portion gives us all the burden, since it's the variable portion that requires attention. In preparing a budget, we may take into consideration the movement of the variable portion of these expenses and consider in your re-calculation the actual market price movement and the consumprion or usage to come out with a more reasonable figure.
Delivery expenses are typically considered variable costs, as they fluctuate based on the volume of goods shipped. The more products a company delivers, the higher the delivery costs will be. However, if a business has a fixed fee for certain delivery services regardless of the number of deliveries, it can also have mixed cost elements. Overall, the classification depends on the specific nature of the delivery expenses incurred by the business.
A simi-variable cost has both variable and fixed factors. An organization's telephone and electric costs are simi- variable. These costs are fixed. However, if more electricity is used, or more telephone calls are made in a given period, they become variable.
AnswerVariable costs change in relation to (and generally in proportion to) sales. Examples include:Chlorine costs for a pool-service company. (More pools serviced = more revenues = more chlorine bought).The cost of nails for a building contractor. (More houses sold = more nails bought).The cost of temporary labor for a temporary staffing company. (More temps placed = more temps hired and paid.)The cost of paper for a printing company. (More jobs printed = more paper used)The cost of beef for a restaurant. (You get the idea).**Costs will increase per production**if there are no production, then there are no coststherefore any 'materials' is an example
Flexible expenses are variable costs that can change from month to month based on personal choices or circumstances. Unlike fixed expenses, which remain constant (such as rent or mortgage payments), flexible expenses include items like dining out, entertainment, and travel. These expenses can be adjusted or reduced as needed, allowing individuals to manage their budgets more effectively. By monitoring flexible expenses, one can enhance financial stability and prioritize spending.
In business, there are two common types of expenses: variable and fixed. Variable expenses are those which change as production changes, whereas fixed charges are usually the same regardless of the amount produced in the short term. Some examples of variable expenses for a packaged goods company: -The cost of the product (raw materials, packaging) -Labor and conversion costs at the factory (the more you produce the more labor will be required) -Overheads at the factory (the more you produce, the more water and electricity you will use)
The opposite of "fixed" expenses are "variable" expenses. You would have both fixed and variable expenses every month.Fixed expenses are the same amount every month - no matter what.Variable expenses are different (they vary) every month depending on choices you make every month.Examples of fixed expenses:rent - it's the same amount whether you're there every day or on vacation for 2 weekscar payment - it's the same whether you drive it daily or it's in the garagestudent loans -garbage collection - (unless you have them haul off furniture or appliances)Examples of variable expenses:electric - the more you use, the higher your billwater - the more you use, the higher your billgroceries - depends on what you buy each weekentertainment - renting movies vs. going out to dinner vs. going to the beach vs. road trip vs. amusement park vs. bar with friends
Yes, the fixed cost become variable the more a given produce is produced. As the produce declines so does the variable as well.
Yes, the fixed cost become variable the more a given produce is produced. As the produce declines so does the variable as well.
Semi-variable costs, as we all know, are costs that both has a fixed and variable costs in it. Semi-variable costs though vary in any way, in does not move in direct proportion with sales and/or any productive activity. The fixed portion of these types of expenses can readily be established/identified, but the variable portion gives us all the burden, since it's the variable portion that requires attention. In preparing a budget, we may take into consideration the movement of the variable portion of these expenses and consider in your re-calculation the actual market price movement and the consumprion or usage to come out with a more reasonable figure.
Delivery expenses are typically considered variable costs, as they fluctuate based on the volume of goods shipped. The more products a company delivers, the higher the delivery costs will be. However, if a business has a fixed fee for certain delivery services regardless of the number of deliveries, it can also have mixed cost elements. Overall, the classification depends on the specific nature of the delivery expenses incurred by the business.
A simi-variable cost has both variable and fixed factors. An organization's telephone and electric costs are simi- variable. These costs are fixed. However, if more electricity is used, or more telephone calls are made in a given period, they become variable.
AnswerVariable costs change in relation to (and generally in proportion to) sales. Examples include:Chlorine costs for a pool-service company. (More pools serviced = more revenues = more chlorine bought).The cost of nails for a building contractor. (More houses sold = more nails bought).The cost of temporary labor for a temporary staffing company. (More temps placed = more temps hired and paid.)The cost of paper for a printing company. (More jobs printed = more paper used)The cost of beef for a restaurant. (You get the idea).**Costs will increase per production**if there are no production, then there are no coststherefore any 'materials' is an example
A family budget is made up of items that fall into these categories: Fixed expenses, variable expenses, periodic expenses and incidentals. Fixed expenses. These are predictable, recurring items that do not change in size, nor schedule. Examples are: monthly rent, cable bill, gym membership... Variable expenses: These are regular expenses that might fluctuate in the amount of the bill. These might include utilities like the electric bill, the gas bill, the water bill or expenses like gas for your car. Periodic expenses: Expenses like the yearly registration of your car(s) fall under this category. They occur regularly but not so frequently that they are always remembered in a monthly budget. Lastly, incidental expenses: This covers things like replacing a blown-out tire, printer ink, a birthday gift for a friend, an ipod... purchases that are more of a singular event than a recurring expense.
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
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
Those costs which used in business for more than one fiscal year treated as fixed assets.