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Because the price of gasoline changes quite often and is not a fixed cost.

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15y ago

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Is a salesman's salary considered a fixed or variable cost?

variable


Are deliver costs considered an variable cost?

If delivery cost changes with the number of units of product sold then it is variable cost.


How would you describe a variable cost?

There are a number of costs that vary or change, but if the variation is not due to volume changes, it is not considered to be a variable cost.


Can fixed cost and variable cost be considered as Overhead cost?

Overhead is considered a fixed cost, even though it may vary somewhat according to the amount of activity.


Is gasoline a variable cost?

Gasoline used to fuel an automobile would almost always be a variable cost because the quantity of gas used would vary with the usage of the auto. In certain situations, you might find that gasoline was a fixed cost. For example, if you had a gas-powered generator that operated 24/7 to generate electricity to keep a remote radio tower powered, that would be a fixed cost because the amount of gas used would not fluctuate based on the usage of the tower to transmit communications.


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 cost of fuel a variable cost?

Yes, the cost of fuel is considered a variable cost because it fluctuates based on usage and market prices. As the amount of fuel consumed increases or decreases, the overall cost will change correspondingly. This makes it a key factor in the variable expenses of businesses that rely on transportation or machinery.


Why marginal costing method not Suitable to be used by manufacturer for external financial reporting and tax purpose?

I think..... In marginal costing method only variable cost is considered as product cost and fixed cost is not considered as product cost. But in reality product cost include fixed and variable, thus both variable and fixed costs should be considered while allocating cost. Marginal costing is used for inside reporting and absorption costing is used for outsider to clarify the real cost of product........ Am i right? Please confirm it


What differentiates a variable from a fixed cost?

Variable and Fixed are accounting terms. It is a useful way to think of costs or overhead. Lets pretend you were a cab driver. Your fixed costs would be purchasing the cab and insurance and registration. Variable Costs change depending on how often you drive the cab. Gasoline would be variable as would tires. The more your drive the quicker tires wear out. Can you guess what windshield washer fluid would be considered?


Is the cost of gasoline extensive?

no the cost of gasoline is not a chemical propety of gasoline. That is constantly changing.


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 a supervisor's salary a fixed or variable cost?

A supervisor's salary typically is considered a fixed cost. The salary of a supervisor typically would not be variable, unless there were other things involved, such as bonus pay.