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A disadvantage of variable costs is that they can lead to unpredictability in overall expenses, making budgeting and financial planning more challenging. Since these costs fluctuate with production levels, businesses may struggle to maintain consistent profit margins during periods of varying demand. Additionally, relying heavily on variable costs may limit an organization's ability to invest in fixed assets that could enhance long-term efficiency and stability.
What else can I help you with?
How segregate the semi variable cost?
In semi variable cost :variable cost = change in cost/change in output then with that rate * output = variable cost semi variable cost - variable cost = fixed cost
Is janitorial cost a variable cost?
No, Janitorial Cost is not a variable cost, it is a Fixed Cost.
How do you calculate variable cost?
Variable cost = Total Cost/ fixed cost
Is Manufacturing cost is overhead or variable?
Manufacturing cost is variable cost.
Is legal fee a fix cost or variable cost?
variable cost
What are the advantages and disadvantages of variable power supply?
A: A variable power supply has no disadvantage since it can replace a fix power supply. The disadvantage will rest with the additional cost to make one.
How segregate the semi variable cost?
In semi variable cost :variable cost = change in cost/change in output then with that rate * output = variable cost semi variable cost - variable cost = fixed cost
Marginal versus variable costing?
Variable cost refers to the TOTAL variable cost of all units, whereas marginal cost is the variable cost of the last unit only. Variable cost is the sum of all the individual marginal costs. The derivative of the Variable Cost is the Marginal Cost. The integral of the Marginal cost is the Variable Cost.
Is janitorial cost a variable cost?
No, Janitorial Cost is not a variable cost, it is a Fixed Cost.
How do you calculate variable cost?
Variable cost = Total Cost/ fixed cost
Is the depriciation cost is variable cost?
yes..depreciation cost is the variable cost..
What is the formula to find the average variable cost?
Average Variable Cost = Total Variable Cost/ Quantity Average Cost = Average Fixed Cost + Average Variable Cost Average Cost = Total Cost/Quantity
Is the cost of fuel for vehicles a variable cost?
Variable cost: The cost change with the change in activity is called variable cost. So as much fuel used cost increased accordingly so it is variable cost.
Production cost is which kind of cost variable or fixed cost?
variable
Is Manufacturing cost is overhead or variable?
Manufacturing cost is variable cost.
Is legal fee a fix cost or variable cost?
variable cost
Fixed cost variable cost equals?
Fixed cost and variable cost is equal to total cost as per following formula: Total Cost = Fixed Cost + Variable Cost
