selling expenses is a mixed costs. it is a mixture of both fixed and variable components.
for example, in selling expenses in a retail shop; fixed costs are the employees salary. while variable cost will be their commission or bonus of the sale.
Variable
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Total cost/ full cost which include Prime Cost *Direct Labour cost *Direct Material Cost *Direct expenses Production Overhead *Variable Overhead *Fixed Overhead Selling and Distribution cost Administration Cost
The cost of hardware can be considered both fixed and variable, depending on the context. Fixed costs refer to expenses that remain constant regardless of production levels, such as the purchase of servers or computers that do not change with usage. Variable costs, on the other hand, can include expenses like maintenance, upgrades, or additional equipment that fluctuate based on demand or usage. Therefore, while initial hardware costs are typically fixed, ongoing expenses can be variable.
Is fire a selling cost, direct manufacturing cost, indirect manufacturing cost, administrative cost, foxed cost or variable cost.
Variable
Fixed cost / (selling price - Variable cost per unit) --> Fixed cost ----------------------------------------------- (Selling Price - Variable Cost Per Unit)
Selling price = Total Cost (Total Variable cost + Total fixed cost) + profit margin
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To determine the variable cost in a business scenario when given the fixed cost, you can subtract the fixed cost from the total cost. Variable costs are expenses that change based on the level of production or sales, while fixed costs remain constant regardless of production levels. By subtracting the fixed cost from the total cost, you can isolate the variable cost component.
Total cost/ full cost which include Prime Cost *Direct Labour cost *Direct Material Cost *Direct expenses Production Overhead *Variable Overhead *Fixed Overhead Selling and Distribution cost Administration Cost
The cost of hardware can be considered both fixed and variable, depending on the context. Fixed costs refer to expenses that remain constant regardless of production levels, such as the purchase of servers or computers that do not change with usage. Variable costs, on the other hand, can include expenses like maintenance, upgrades, or additional equipment that fluctuate based on demand or usage. Therefore, while initial hardware costs are typically fixed, ongoing expenses can be variable.
Is fire a selling cost, direct manufacturing cost, indirect manufacturing cost, administrative cost, foxed cost or variable cost.
If electricity expense is dependant on production level then it is variable expenses other wise some of expenses may be of variable nature while some part is fixed or semi variable nature as well.
To work out the break even point you have to do this equation → (fixed cost)÷(selling price−variable cost). For example the fixed cost is $10000, the selling price is $17 and the variable cost is $12. So you would do → (10000)÷(17−12) which would equal $2000.
Fixed cost and variable cost is equal to total cost as per following formula: Total Cost = Fixed Cost + Variable Cost
its a fixed cost