True variable cost refers to expenses that change directly with the level of production or sales volume. Unlike fixed costs, which remain constant regardless of output, true variable costs fluctuate in direct proportion to the amount produced or sold, such as raw materials, direct labor, and sales commissions. Understanding true variable costs is crucial for businesses to accurately assess profitability and make informed pricing and production decisions.
true
No fixed costs do not change where variable do depending on market and amount ordered among other varies.
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
No, Janitorial Cost is not a variable cost, it is a Fixed Cost.
Variable cost = Total Cost/ fixed cost
No. If a variable cost does not differ between alternatives than it is irrelevant.
yes ofcourse
true
If direct labor don't change with number of units product then it is fixed cost but if it changes with the change in production units then it Is variable cost.
True.
No fixed costs do not change where variable do depending on market and amount ordered among other varies.
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
False, it is the fixed cost which is not increased or decreased with proportion to output.
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.
No, Janitorial Cost is not a variable cost, it is a Fixed Cost.
Variable cost = Total Cost/ fixed cost
yes..depreciation cost is the variable cost..