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Labor. Fixed rate for hours planned; variable rates for unscheduled overtime.
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∙ 16y ago
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Are selling expenses fixed or variable cost?
selling expenses is a mixed costs. it is a mixture of both fixed and variable components. for example, in selling expenses in a retail shop; fixed costs are the employees salary. while variable cost will be their commission or bonus of the sale.
What are semi variable direct costs?
They are costs that involve an element of both fixed and variable costs eg a telephone bill involves line rental (fixed) plus cost for calls made (variable)
Please can you tell me whether labor costs may be both fixed and variable costs?
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.
Can direct costs display a fixed or variable behavior pattern?
Yes direct cost may be a fixed or variable cost or both.
What is the example of simi variable costs?
A simi-variable cost has both variable and fixed factors. An organization's telephone and electric costs are simi- variable. These costs are fixed. However, if more electricity is used, or more telephone calls are made in a given period, they become variable.
Are selling expenses fixed or variable cost?
selling expenses is a mixed costs. it is a mixture of both fixed and variable components. for example, in selling expenses in a retail shop; fixed costs are the employees salary. while variable cost will be their commission or bonus of the sale.
What are variable direct costs?
They are costs that involve an element of both fixed and variable costs eg a telephone bill involves line rental (fixed) plus cost for calls made (variable)
What are semi variable direct costs?
They are costs that involve an element of both fixed and variable costs eg a telephone bill involves line rental (fixed) plus cost for calls made (variable)
Please can you tell me whether labor costs may be both fixed and variable costs?
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.
Can direct costs display a fixed or variable behavior pattern?
Yes direct cost may be a fixed or variable cost or both.
What is the example of simi variable costs?
A simi-variable cost has both variable and fixed factors. An organization's telephone and electric costs are simi- variable. These costs are fixed. However, if more electricity is used, or more telephone calls are made in a given period, they become variable.
What is a mixed cost?
A mixed cost will contain both a fixed and a variable component. It is used to predict how costs will fluctuate with a variable component.
Are all costs variable?
Direct Cost are those costs that can be directly assigned to a production process. Indirect cost were those costs that cannot be directly assigned to production process but have to allocate to production. Variable costs are those costs that vary directly with the production level. Only Direct cost could be variable . But not all direct cost are variable. Thus direct cost contains both Variable and Fixed elements while indirect costs contains only fixed element.
Are all direct costs variable?
Direct Cost are those costs that can be directly assigned to a production process. Indirect cost were those costs that cannot be directly assigned to production process but have to allocate to production. Variable costs are those costs that vary directly with the production level. Only Direct cost could be variable . But not all direct cost are variable. Thus direct cost contains both Variable and Fixed elements while indirect costs contains only fixed element.
What are The three most common cost behavior classifications?
The three most common cost behavior classifications are fixed costs, variable costs, and mixed costs. Fixed costs are those expenses that remain constant regardless of the level of production or sales. Examples of fixed costs include rent, salaries, and insurance. No matter how much you produce or sell, these costs will stay the same. On the other hand, variable costs are directly proportional to the level of production or sales. As your production or sales increase, these costs also rise. Examples of variable costs are raw materials, labor, and direct utilities. If your production doubles, variable costs will also double. Lastly, we have mixed costs, which are a combination of both fixed and variable elements. They consist of a fixed portion that remains constant and a variable portion that changes based on production or sales volume. An example of a mixed cost is a phone bill that has a fixed monthly charge plus additional charges based on the number of calls made. Understanding these cost behavior classifications is crucial for businesses to make informed decisions and accurately analyze their financial performance.
What are the limitations of absorption costing?
Absorption costing does not understand the importance of fixed costs. In absortption costing, fixed costs are absorbed to unit, therefore it is hard to distinguish between variable and fixed costs. And also, the variability of profit will cause confusion, the reason is that the net profit varies with both sales and stock changed under absorption costing. Absorption costing does not understand the importance of fixed costs. In absortption costing, fixed costs are absorbed to unit, therefore it is hard to distinguish between variable and fixed costs. And also, the variability of profit will cause confusion, the reason is that the net profit varies with both sales and stock changed under absorption costing.
Why do you calculate fixed and variable cost portion for mixed cost?
Fixed Costs: These are those costs which remain fixed up to certain range of work capacity no matter how much product you produce within that capacity range. Like factory building rent. You pay the rent no matter that did you use that building for making the products or not. Variable Costs: These are those costs which change with the change in the number of product units you produce. Like Material , Labor etc Mixed Cost/Semi Variable Costs: These are those cost the part of which is remain fixed and some part of the cost is variable.
