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Cost of goods sold (COGS) is primarily considered a variable cost because it fluctuates with the level of production or sales. It includes costs directly tied to the production of goods, such as materials and labor, which increase or decrease based on the quantity sold. However, some fixed costs, like certain overhead expenses, may also be allocated to COGS in specific accounting practices, making it potentially mixed in certain contexts. Overall, COGS is predominantly variable.
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What is a mixed cost?
A mixed cost will contain both a fixed and a variable component. It is used to predict how costs will fluctuate with a variable component.
Are selling expenses fixed or variable cost?
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.
Would you consider airline fuel cost as a fixed or variable cost?
With respect to the number of passengers on an aircraft, fuel cost should be mixed, i.e. a combination of fixed costs and variable costs. However, since the number of passengers on an aircraft have little effect on its overall weight, the variable portion would be small, and the cost will be mostly fixed. With respect to the number of miles flown, aircraft fuel cost would be variable.
Is delivery expense a fixed or variable or mixed cost?
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.
What determines the difference between a variable and a fixed cost?
The relataionship of cost between the level of production is determine the fixed or variable cost if cost change with production level then it is variable cost otherwise fixed cost.
Is maintenance on production equipment a fixed variable or mixed cost?
fixed and variable
What is fixed cost variable cost and mixed cost in truck?
Fixed cost is that cost which remains fixed and don't change with change in production level. Variable cost is that cost which varies with change in production level. Mixed cost is that cost which have both the elements, some portion of fixed cost while some portion is variable cost.
What is High-low method of variable cost and fixed cost?
High and low method is the method for separating fixed cost and variable cost from mixed cost.
What is a mixed cost?
A mixed cost will contain both a fixed and a variable component. It is used to predict how costs will fluctuate with a variable component.
Is Janatorial Costs a fixed mixed or variable cost?
The three types of cost you are referring to are Fixed, Semi Variable and Variable Costs. On a well though out COA the janitorial costs would fall under administrative costs. Thus fixed.
Is shipping expense a fixed or variable or mixed cost?
Shipping expenses are typically considered variable costs, as they fluctuate based on the volume of goods shipped. However, they can also have fixed components, such as minimum charges or contracts that establish a baseline cost regardless of shipping volume. Therefore, shipping expenses can be classified as mixed costs, depending on the specific circumstances of the shipping arrangement.
Are selling expenses fixed or variable cost?
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.
Fixed cost variable cost equals?
Fixed cost and variable cost is equal to total cost as per following formula: Total Cost = Fixed Cost + Variable Cost
Is clerical salaries a fixed cost or variable cost?
its a fixed cost
Is salary and commission a mixed cost?
Yes, salary and commission can be considered a mixed cost. Salary represents a fixed cost since it is usually a consistent, predetermined amount paid to employees, regardless of performance. In contrast, commission is a variable cost that fluctuates based on sales performance or productivity. Together, they create a mixed cost structure that combines both fixed and variable components.
Why do you calculate fixed and variable cost portion for mixed cost?
Fixed Costs: These are those costs which remain fixed up to certain range of work capacity no matter how much product you produce within that capacity range. Like factory building rent. You pay the rent no matter that did you use that building for making the products or not. Variable Costs: These are those costs which change with the change in the number of product units you produce. Like Material , Labor etc Mixed Cost/Semi Variable Costs: These are those cost the part of which is remain fixed and some part of the cost is variable.
Would you consider airline fuel cost as a fixed or variable cost?
With respect to the number of passengers on an aircraft, fuel cost should be mixed, i.e. a combination of fixed costs and variable costs. However, since the number of passengers on an aircraft have little effect on its overall weight, the variable portion would be small, and the cost will be mostly fixed. With respect to the number of miles flown, aircraft fuel cost would be variable.
