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Examples of variable costs?
Variable costs are corporate expenses that vary in direct proportion to the quantity of output. Unlike fixed costs, which remain constant regardless of output, variable costs are a direct function of production volume, rising whenever production expands and falling whenever it contracts. Examples of common variable costs include raw materials, packaging, and labor directly involved in a company's manufacturing process.The formula for calculating total variable cost is:Total Variable Cost = Total Quantity of Output * Variable Cost Per Unit of OutputThe term variable cost is not to be confused with variable costing, which is an http://www.investinganswers.com/term/accounting-835method related to reporting variable costs.some examples would be cost of goods sold, sales commissions, shipping charges, delivery charges, costs of direct materials or supplies, wages of part-time or temporary employees, and sales or production bonuses
Why does the marginal cost curve cut through the average variable cost curve exactly at the minimum of the average variable cost curve?
Marginal cost curve cuts average cost (variable or total cost) at its minimum simply to portray the law of variable proportions. The idea is as labor is increased with capital being fixed, productivity increases upto a point and then decreases and later becomes negative. To relate the same productivity with average cost function, the average cost first decreases , reaches a minimum and then increases. Now marginal cost is just a change in the total cost. Logic says that when MC is less than AC productivity is favourable, thus cost is falling. When MC is more than AC productivity is not favourable and thus the rising portion of the cost curve. When MC = AC , the productivity that was reducing the average cost per unit has maximized and from then on starts rising cost(or decreasing productivity). That is the only point where they can intersect.
What are the relationship between marginal cost and average total cost schedule?
Marginal cost is the cost incurred in producing an additional unit of a product. It is the cost per unit of a product as against the total cost. It is therefore the variable cost of producing one more unit of a product.Average total cost is the total cost of production at an activity level. it is the total cost of divided by the total production.Whiles marginal cost shows the cost incurred in producing an additional unit of a product, average cost shows the total cost of production per unit.Just a small addition to this thought:Think of the marginal cost as being at a point in time, whereas the average total cost is calculated over a period of time. As a result, marginal cost at any given point may be higher or lower than an average total cost.Quick example:ABC manufactures a product they call Widget AWidget A sells for a price of $20ABC sells 1,000 units of Widget AFixed costs for this production run are $5,000, regardless of # of units soldVariable costs are $12 per unitGross Revenues $20,000Fixed Cost Expense $ 5,000Variable Cost Expense $12,000Gross Profit $ 3,000Breakeven # of units can be calculated as follows:20x = 5000 + 12x. Solving for x gives 625 units to break even. At this point the Average Transaction Cost equals the selling price of $20 per unit. As each additional unit is produced the ATC will decrease since the only additional cost is the variable cost of $12 per unit. Therefore, in this very simple example, the MARGINAL COST of producing each unit OVER 625 would be the $12 variable cost expense. In the example above, at 1,000 units the Average Transaction Cost is $17 ($5 per unit for Fixed and $12 per unit for Variable), which is a decrease from the $20 ATC at break even.
Why short run average cost curve is U shaped?
The family of short-run cost curves consisting of average total cost, average variable cost, and marginal cost, all of which have U-shapes. Each is U-shaped because it begins with relatively high but falling cost for small quantities of output, reaches a minimum value, then has rising cost at large quantities of output. Although the average fixed cost curve is not U-shaped, it is occasionally included with the other three just for sake of completeness.
How do rising gas prices affect teenagers?
The rising gas prices will affect teenages just as the rising gas prices affect everyone.
Examples of variable costs?
Variable costs are corporate expenses that vary in direct proportion to the quantity of output. Unlike fixed costs, which remain constant regardless of output, variable costs are a direct function of production volume, rising whenever production expands and falling whenever it contracts. Examples of common variable costs include raw materials, packaging, and labor directly involved in a company's manufacturing process.The formula for calculating total variable cost is:Total Variable Cost = Total Quantity of Output * Variable Cost Per Unit of OutputThe term variable cost is not to be confused with variable costing, which is an http://www.investinganswers.com/term/accounting-835method related to reporting variable costs.some examples would be cost of goods sold, sales commissions, shipping charges, delivery charges, costs of direct materials or supplies, wages of part-time or temporary employees, and sales or production bonuses
What is angular coefficient?
The angular coefficient, also known as the slope of a line, measures the rate at which a line is rising or falling. It indicates how much the dependent variable changes for a unit change in the independent variable in a linear relationship. Mathematically, it is represented by the value of m in the equation y = mx + b, where m is the angular coefficient.
What is the historical trend of variable rates for Home Equity Line of Credit (HELOC) loans?
The historical trend of variable rates for Home Equity Line of Credit (HELOC) loans has fluctuated over time, influenced by economic conditions and interest rate changes. Generally, variable rates have followed the overall trend of interest rates, rising and falling in response to market conditions. It is important for borrowers to carefully consider the potential for rate changes when choosing a HELOC loan.
Are winds strong or weak near the equator?
Winds near the equator are generally weak, as a result of the weak pressure gradient caused by the warm air rising at the Intertropical Convergence Zone (ITCZ). This region is characterized by light and variable winds, known as the doldrums.
Does motional emf call induced emf?
yes indused emf is also called motional emf. If an open coil is subjected to a variable magnetic field, at the ends of the coil a potential difference is induced which is called induced emf. If a coil is connected to an emf source and switched on, the rising current will produced an variable magnetic field which in turn produces an emf. It is called back emf.
What part of the equator has no wind?
The equator itself does not have consistent winds as it experiences a phenomenon known as the doldrums or the Intertropical Convergence Zone (ITCZ) where air is rising. This area near the equator is characterized by light and variable winds.
Why does the marginal cost curve cut through the average variable cost curve exactly at the minimum of the average variable cost curve?
Marginal cost curve cuts average cost (variable or total cost) at its minimum simply to portray the law of variable proportions. The idea is as labor is increased with capital being fixed, productivity increases upto a point and then decreases and later becomes negative. To relate the same productivity with average cost function, the average cost first decreases , reaches a minimum and then increases. Now marginal cost is just a change in the total cost. Logic says that when MC is less than AC productivity is favourable, thus cost is falling. When MC is more than AC productivity is not favourable and thus the rising portion of the cost curve. When MC = AC , the productivity that was reducing the average cost per unit has maximized and from then on starts rising cost(or decreasing productivity). That is the only point where they can intersect.
What are loan variables?
A variable-rate loan is a loan for which the rate of interest varies periodically with a changing market rate, such as the prime rate. With a variable-rate loan, the periodic rate fluctuates along with a predetermined measure, such as the prime rate or the Treasury bill (T-bill) rate. The prime rate is the rate banks charge to their most preferred customers, and it is commonly used as a base rate for variable-rate loans. For example, suppose you took out a loan in February 2004, when the prime rate was 4 percent, and agreed to pay the prime rate plus 2 percentage points in interest. The interest rate on your loan would have started out at 6 percent, but you took the risk of unexpected increases in future payments. For example, by October 2006, the prime rate had more than doubled, to 8.25 percent, so your loan rate increased to 10.25 percent, resulting in a substantial increase your monthly payment. In periods when interest rates are rising, especially when they rise rapidly, a variable-rate loan can subject you to unexpected increases in required payments. However, variable-rate loans generally carry lower initial interest rates than fixed-rate loans because the lender isn't facing the risk of having the interest rate fall behind market rates on comparable loans. Therefore, if the introductory rate is low enough, or if you don't expect to borrow the money for a long period of time, you might find it worthwhile to take out a variable-rate loan, despite the risk of increased payments. Certain types of loans are more likely than others to have fixed rates. It's relatively common for rates on automobile loans to be fixed, whereas rates on home equity loans can be either fixed or variable. The interest rates on credit cards can be either fixed or variable. In practice, revolving credit agreements are most often classified as variable-rate loans because the issuer generally retains the right to change the rate at any time in the future.
An enviromental phenomenon that may result in rising of sea levels?
Melting of glaciers.
As a result of the rising price of imported oil in the 1970s?
trade deficits grew
What forms as a result of rising at the equator?
Clouds form as air rises at the equator.
What is the result when ocean floors spread?
oceanic trenches and volcanoes from the rising magma.
