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The variable portion of the semi variable cost of electricity for a manufacturing plant is a conversion cost?
yes A cost that attaches to the physical units is termed a product cost. Product costs would include direct materials, direct manufacturing labor, and manufacturing overhead. Conversion cost is the cost involved in converting the direct materials into a finished product. It is composed of direct manufacturing labor and manufacturing overhead. Any cost that does not attach to the physical units would be termed a period cost and would be expensed as incurred. Therefore, a cost is either a period or a product cost. Electricity cost, whether variable or fixed, would be included in manufacturing overhead and classified as conversion costs, and therefore cannot be classified as a period cost.
What else can I help you with?
Splitting semi variable costs?
Semi-variable costs, as we all know, are costs that both has a fixed and variable costs in it. Semi-variable costs though vary in any way, in does not move in direct proportion with sales and/or any productive activity. The fixed portion of these types of expenses can readily be established/identified, but the variable portion gives us all the burden, since it's the variable portion that requires attention. In preparing a budget, we may take into consideration the movement of the variable portion of these expenses and consider in your re-calculation the actual market price movement and the consumprion or usage to come out with a more reasonable figure.
Must be subtracted from sales to reach the contribution margin?
To reach the contribution margin, variable costs must be subtracted from sales revenue. These variable costs include expenses that fluctuate with production levels, such as direct materials, direct labor, and variable manufacturing overhead. The contribution margin represents the portion of sales revenue that contributes to covering fixed costs and generating profit. Thus, understanding and managing these variable costs is crucial for assessing profitability.
WHAT IS The variable portion of advertising costs?
The variable portion of advertising costs refers to expenses that fluctuate based on the level of advertising activity or sales volume. This can include costs such as pay-per-click advertising, promotional discounts, or fees for additional advertising placements that change with demand. Unlike fixed costs, which remain constant regardless of sales levels, variable costs can increase or decrease depending on marketing strategies and effectiveness. Understanding this helps businesses allocate their budgets more efficiently based on performance outcomes.
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.
What is indirect labor relationship to unit cost?
A portion of indirect costs factors into your unit cost. For example, let's say you were running a factory. A portion of the factory's square footage is used for administrative tasks, while another portion is used to manufacture your products. The percent of rent and utilities pertaining to the manufacturing would get allocated amongst your units to calculate unit cost.
What cost contains a combination of fixed and variable costs?
Many costs includes fixed as well as variable portion for example electricity cost in which there may be some portion of expense which remains fixed while some change due to higer or lower production.
Is variable cost part of opportunity cost?
According to Wikipedia and definition with which I agree: Variable costs are expenses that change in proportion to the activity of a business.Variable cost is the sum of marginal costs over all units produced. Opportunity cost on the other hand is not included in the financials in any way shape or form. In manufacturing, electricity can be fixed but a portion can be variable depending on machinery and extended hours. The opportunity cost can be the cost of your time to perform certain duties versus and the benefit from the duty you cannot perform due to the one you chose to perform.
Splitting semi variable costs?
Semi-variable costs, as we all know, are costs that both has a fixed and variable costs in it. Semi-variable costs though vary in any way, in does not move in direct proportion with sales and/or any productive activity. The fixed portion of these types of expenses can readily be established/identified, but the variable portion gives us all the burden, since it's the variable portion that requires attention. In preparing a budget, we may take into consideration the movement of the variable portion of these expenses and consider in your re-calculation the actual market price movement and the consumprion or usage to come out with a more reasonable figure.
What is a dependent variable in an experiment?
A dependant variable in an experiment is the portion of the experiment, or "y" variable that is subjected to change as a result of the various forms of the independent variable, or "x" variable.
Must be subtracted from sales to reach the contribution margin?
To reach the contribution margin, variable costs must be subtracted from sales revenue. These variable costs include expenses that fluctuate with production levels, such as direct materials, direct labor, and variable manufacturing overhead. The contribution margin represents the portion of sales revenue that contributes to covering fixed costs and generating profit. Thus, understanding and managing these variable costs is crucial for assessing profitability.
Is there a Lego manufacturing plant in the Northeast portion of the US?
There was one in Enfield, CT, but it is now shut down. There is Lego manufacturing in Mexico.
Which portion of the antibody--V or C is its antigen--binding site?
C stands for constant or conserved, V stands for variable. The variable part is what latches on to the antigen.
Is A value with a decimal portion automatically rounded to a whole number when assigned to an Integer variable?
Yes.
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.
Where is the american manufacturing belt?
The American manufacturing belt is in the Midwestern and northeastern part of the United States. This portion of the country has an abundance of natural resources. It also has a well-developed infrastructure.
How is coal used today?
Coal is primarily used for electricity generation, with coal-fired power plants producing a significant portion of the world's electricity. It is also used in industrial processes such as steel production and cement manufacturing. In some countries, coal is still used for heating and cooking in households.
Uses of coal?
Coal is primarily used for electricity generation, accounting for a significant portion of global energy production. It is also used in industrial processes such as steel production and cement manufacturing. Additionally, coal is used in residential and commercial heating and as a feedstock for certain chemical processes.
