Generally variable costs are relevant costs but if due to any decision fixed costs are also going to affected then fixed costs are also relevant costs.
No fixed costs are not always irrelevant. Some fixed costs may differ among the alternatives and hence will be relevant. e.g. When figuring the incremental cost of the more expensive car, the relevant costs would be the purchase price of the new car (net of the resale value of the old car) and the increases in the fixed costs of insurance and automobile tax and license.
Any cost whether variable cost or fixed cost is irrelevant if not different between alternatives at hand.
unit fixed costs and total variable cost
There are variable and fixed costs. Businesses can manipulate the variable costs, but they cannot change their fixed costs in business.
Unit Fixed Cost and Total Variable Cost Kenny Kalejaiye
No fixed costs are not always irrelevant. Some fixed costs may differ among the alternatives and hence will be relevant. e.g. When figuring the incremental cost of the more expensive car, the relevant costs would be the purchase price of the new car (net of the resale value of the old car) and the increases in the fixed costs of insurance and automobile tax and license.
Any cost whether variable cost or fixed cost is irrelevant if not different between alternatives at hand.
Relevant means that the evidence provided goes toward establishing whether a person met one or more of the required elements of a crime. Irrelevant means it does no have anything to do with proving any of those elements. Often an attorney will try to get irrelevant evidence introduced for other factors, such as showing prior crimes, or getting th sympathy of the jury, which may or may not be applicable to what is being tried. * Differential/ marginal/variable/incremental costs are always relevant * Cash costs and future costs are always relevant * Past costs or sunk costs are always irrelevant * Fixed costs are always irrelevant unless they are incremental
unit fixed costs and total variable cost
Fixed costs are those expenses that do not change in proportion to the activity within the relevant period. And variable costs are costs that can be varied flexibly as the conditions change. So your personal fixed cost could be the fix line rent that you pay for the cell phone or the admission fee of your school. The variable costs could be your monthly shopping, tuition fees that depends on the courses etc.
There are variable and fixed costs. Businesses can manipulate the variable costs, but they cannot change their fixed costs in business.
Type your answer here... fixed cost + variable cost = total cost
Unit Fixed Cost and Total Variable Cost Kenny Kalejaiye
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.
Fixed Costs: Salaries Variable Costs: Medicines, ambulance fuel, paper, "CEO & friends"benefits package.
Variable operating costs + fixed operating costs = total operating costs.
Fixed costs are considered irrelevant in profit maximization decisions because they do not change with the level of production or sales; they remain constant regardless of output. Profit maximization focuses on marginal costs and marginal revenues, which directly impact decision-making. Since fixed costs do not influence the marginal analysis, they do not affect the optimal output level. Thus, decisions should be based on variable costs and revenues that fluctuate with production levels.