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What is a cost which remains constant in total regardless of the change in the activity leve but on a per unit basis it varies with the level of activity is called a?
This type of cost is known as a fixed cost. Fixed costs remain constant in total regardless of changes in the level of activity, such as rent or salaries. However, when expressed on a per unit basis, these costs vary inversely with the activity level; as production increases, the fixed cost per unit decreases, and vice versa.
What happens as the level of activity decrease within the relevant range?
Although fixed cost per unit decreases with increases in activity levels, total fixed cost is not affected by changes in the activity level within the relevant range.
Is wages paid to a temporary personnel a fixed cost?
Yes. Variable cost varies with the activity of the business. Unless the wage given is in accordance with the activity level for e.g. piece rate, then it should be fixed cost.
Describe the behavior of unit fixed costs as the level of activity increases?
Unit Fixed Cost remain fixed up to certain range or level of activity and then it take a jump and then remain fixed for range of activity and this behaviour continues
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.
What cost is not a fixed cost?
A cost which varies with the level of production activity is not a fixed cost and called variable cost.
What is a cost which remains constant in total regardless of the change in the activity leve but on a per unit basis it varies with the level of activity is called a?
This type of cost is known as a fixed cost. Fixed costs remain constant in total regardless of changes in the level of activity, such as rent or salaries. However, when expressed on a per unit basis, these costs vary inversely with the activity level; as production increases, the fixed cost per unit decreases, and vice versa.
What happens as the level of activity decrease within the relevant range?
Although fixed cost per unit decreases with increases in activity levels, total fixed cost is not affected by changes in the activity level within the relevant range.
Is wages paid to a temporary personnel a fixed cost?
Yes. Variable cost varies with the activity of the business. Unless the wage given is in accordance with the activity level for e.g. piece rate, then it should be fixed cost.
Is electricity cost a variable cost or a fixed cost?
It's a variable cost, as it changes with the change in activity level
Describe the behavior of unit fixed costs as the level of activity increases?
Unit Fixed Cost remain fixed up to certain range or level of activity and then it take a jump and then remain fixed for range of activity and this behaviour continues
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.
Is sales promotion cost a variable cost?
If it varies with the level of production then it is variable cost otherwise it is fixed cost.
What is flexible budget?
Fixed or Static buget is for a particular activity level. Flexible budget is for a range of activity level. Differentiate between Fixed and Flexible budget ? Needs a complete answer.
What costs does not change when the level of business activity changes?
Costs that do not change with the level of business activity are known as fixed costs. These include expenses such as rent, salaries of permanent staff, and insurance, which remain constant regardless of production levels or sales volume. In contrast, variable costs fluctuate with business activity, while fixed costs provide stability in financial planning. Understanding fixed costs is crucial for budgeting and forecasting in a business.
What is fixed cost in economics?
Fixed are the cost that are not affected the by the fluctuations in the level of activity. As an example the rent cost of a apperal manufacturing company would be a typical example of a fixed cost in short run as rental is not affected by the level of activity that is produced.
How much ocean level changes?
It varies, depending on where you are.
