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What is the systematic allocation of a fixed assets cost to expense?
Depreciation.
How do you calculate fixed cost given total cost and sales volume?
Fixed cost = total cost / sale volume
When fixed cost decreases what does this do for the break-even point?
When fixed assets reduces it also reduces the breakeven point because now less number of units required to fulfill the fixed cost.
How do you calculate variable cost?
Variable cost = Total Cost/ fixed cost
What is the equity to assets ratio?
This ratio refers how much amount invested for fixed assets from equity. Formula for calulating this ration:- Fixed Assets/Equity(Capital+Reserves+Other accumilated Profits) If the Ratio is .75 ie 75%of Equity spend for Fixed Assets, Hence we can calculate working Capital of the Company
What is depreciation of fixed assets?
Depreciation is the method of allocation of part of cost to all fiscal years to which fixed asset is used for revenue generation to income statement
Why fixed assets depreciate?
Fixed assets depreciate because through depreciation process cost of fixed asset charged to all those fiscal years in which that fixed asset is used.
How do you calculate the average fixed cost for a business?
To calculate the average fixed cost for a business, you divide the total fixed costs by the quantity of output produced. This gives you the fixed cost per unit of output.
What is the systematic allocation of a fixed assets cost to expense?
Depreciation.
What is the method to calculate average fixed cost in economics?
To calculate average fixed cost in economics, you divide total fixed costs by the quantity of output produced. This gives you the average fixed cost per unit of output.
How do you calculate fixed cost given total cost and sales volume?
Fixed cost = total cost / sale volume
How can one calculate the average fixed cost for a business?
To calculate the average fixed cost for a business, you divide the total fixed costs by the quantity of output produced. This gives you the cost per unit of fixed expenses incurred by the business.
When fixed cost decreases what does this do for the break-even point?
When fixed assets reduces it also reduces the breakeven point because now less number of units required to fulfill the fixed cost.
How do you calculate variable cost?
Variable cost = Total Cost/ fixed cost
What is Gross block?
Gross Block=Cost of fixed assets(cost of accumalating the asset)+depreciation.
What are proceeds from disposal of assets?
Proceeds from disposal of assets is equal to = Total cost of disposed assets- Accumulated depreciation related to assets disposed+ Profit on sale of fixed assets
What is the equity to assets ratio?
This ratio refers how much amount invested for fixed assets from equity. Formula for calulating this ration:- Fixed Assets/Equity(Capital+Reserves+Other accumilated Profits) If the Ratio is .75 ie 75%of Equity spend for Fixed Assets, Hence we can calculate working Capital of the Company
