false
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.
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.
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
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.
If it varies with the level of production then it is variable cost otherwise it is fixed cost.
A cost which varies with the level of production activity is not a fixed cost and called variable cost.
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.
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.
It's a variable cost, as it changes with the change in activity level
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
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.
If it varies with the level of production then it is variable cost otherwise it is fixed cost.
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.
It varies, depending on where you are.
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.
Here is a common definition: Fixed costs are those that do not fluctuate with changes in production activity level or sales volume, such as rent, insurance, dues and subscriptions, equipment leases, payments on loans, depreciation, management salaries, and advertising.
It remains the same per unit regardless of activity level