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Is promotion expense a variable cost?
Yes, promotion expense is typically considered a variable cost because it can fluctuate based on sales levels and marketing strategies. Companies often adjust their promotional spending in response to sales performance, new product launches, or seasonal demands. As a result, higher sales may lead to increased promotional expenses, while lower sales could reduce these costs.
Is sales commissions a fixed or variable cost?
Sales Commission varies with volume of sales that's why it is a variable cost as much the sales as much the sales commission, high sales high sales commission and vice versa.
Is sales on account a variable cost?
Sales aren't any sort of cost. They are the opposite of costs.
The difference between sales price per unit and variable cost per unit is the?
The sales price includes variable cost, the cost of the unit and the markup. Sales price is the rate customers pay for the item.
Break Even Sales - Formula in Cost Accounting?
Breakeven point = Fixed Cost / Contribution margin Contribution margin = (Sales - Variable cost) / Sales
Is Promotion cost fix or variable?
can be fixed or variable
How can you determine sales when variable cost is given and sale ratio?
If Variable cost and sales ratio is provided then by using mathematical equation approach mixing figures can be found by using provided figures. Sales = Variable cost + Sales percentage of (Variable cost)
Is sales commissions a fixed or variable cost?
Sales Commission varies with volume of sales that's why it is a variable cost as much the sales as much the sales commission, high sales high sales commission and vice versa.
How do you calculate the Contribution margin ratio?
sales-variable cost= contribution
Is sales on account a variable cost?
Sales aren't any sort of cost. They are the opposite of costs.
The difference between sales price per unit and variable cost per unit is the?
The sales price includes variable cost, the cost of the unit and the markup. Sales price is the rate customers pay for the item.
How do you calculate break even when you only have total sales total variable cost and total fixed cost no unit selling quantity given eg sales 500000 fixed cost 160000 and variable cost 350000?
You cannot. Sales and variable costs must be functions of the units (quantities) sold and produced.
What is V ratio?
The Profit Volume (PV) Ratio is the ratio of Contribution over Sales. It measures the Profitability of the firm and is one of the important ratios for computing profitabilty. The Contribution is the extra amount of sales over variable cost. Contribution is also Fixed cost plus profit. Profit = Sales - Variable Cost - Fixed Cost. Thus Contribution is: Profit + Fixed Cost = Sales - Variable Cost. Therefore PV Ratio = (Contribution/Sales)X100. (This as a percentage of sales)
Break Even Sales - Formula in Cost Accounting?
Breakeven point = Fixed Cost / Contribution margin Contribution margin = (Sales - Variable cost) / Sales
What is p v ratio?
The Profit Volume (PV) Ratio is the ratio of Contribution over Sales. It measures the Profitability of the firm and is one of the important ratios for computing profitabilty. The Contribution is the extra amount of sales over variable cost. Contribution is also Fixed cost plus profit. Profit = Sales - Variable Cost - Fixed Cost. Thus Contribution is: Profit + Fixed Cost = Sales - Variable Cost. Therefore PV Ratio = (Contribution/Sales)X100. (This as a percentage of sales)
Is commissions a fixed or variable costs?
Sales Commission varies with volume of sales that's why it is a variable cost as much the sales as much the sales commission, high sales high sales commission and vice versa.
How do you calculate breake even sales knowing only total sales and variable cost and fixed cost?
Formula for breakeven point = Fixed Cost / Contribution margin Contribution margin = Total Sales - variable cost SO using above mentioned formula break even sales can be found.
