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Managers classify costs as variable or fixed based on their behavior in relation to production levels. Variable costs change directly with the volume of goods or services produced, such as materials and labor, while fixed costs remain constant regardless of production levels, like rent and salaries. They analyze historical data, project future production needs, and consider the nature of each cost to make this determination. Understanding these distinctions helps managers in budgeting, forecasting, and pricing strategies.
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Please can you tell me whether labor costs may be both fixed and variable costs?
Labor cost can be fixed as well as variable. That labor which varies with changes in level of production then it is variable cost but if labor remain fixed then it is fixed cost.
Why does managers use a contribution margin income statement?
Managers will use this because it separates the fixed from the variable costs. It helps them make short term decisions better by not looking at long term fixed costs which can not be easily changed.
The difference between fixed and variable inputs?
difference between fixed and variable inputs
Is freight in a variable of fixed cost?
Variable
Is overtime pay fixed or variable?
Variable
What is difference between fixed overhead and variable overhead?
The difference between fixed overhead and variable overhead is that fixed overheads are the ones that do not change regardless and variable overheads are the ones that vary depending on the number of units that it produces. An example of fixed overhead is a managers salary.
Please can you tell me whether labor costs may be both fixed and variable costs?
Labor cost can be fixed as well as variable. That labor which varies with changes in level of production then it is variable cost but if labor remain fixed then it is fixed cost.
How can one sort through variable rate mortgages?
Variable rate mortgages are mortgages that are not fixed. A person would have to decide which mortgage they would like to try for, either a fixed mortgage rate or a variable rate mortgage.
Why does managers use a contribution margin income statement?
Managers will use this because it separates the fixed from the variable costs. It helps them make short term decisions better by not looking at long term fixed costs which can not be easily changed.
Can an expense be defined as variable cost and fixed costs?
depending on if the expense is a recurring is whether or not it can be fixed . most expense are unseen and therefore can not be put in as a fixed cost
Is labor cost fixed or vriable cost?
Labor costs can be considered fixed, variable or both depending on the business. If workers are hourly (e.g., factory workers, delivery drivers, etc.), labor is generally considered variable. If workers are on an annual salary, but are hired and fired based on production needs (e.g., floor managers, plant managers, etc.), labor can be considered variable. If workers are on an annual salary, but are not hired and fired based on production needs (e.g., Chief Financial Officer, Director of Operations, etc.), labor can be considered fixed.
What do you call a symbol that can represent a quantity?
VARIABLE. When this variable has a fixed number assigned to it and does not change, it is called a "fixed variable".
The difference between fixed and variable inputs?
difference between fixed and variable inputs
How do you decide whether you should refinance a home equity loan at a fixed rate?
How fast will you pay it off? 4lifeguild
Is overtime pay fixed or variable?
Variable
Is freight in a variable of fixed cost?
Variable
Is administration a fixed or a variable cost?
Fixed
