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High and low method is the method for separating fixed cost and variable cost from mixed cost.
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How do you calculate fixed cost given total cost?
Fixed Cost - costs that do not vary with the quantity of output produced.The best example I can think of is when making Chocolate Chip Cookies. You need ingredients and supplies to make them:Chocolate Chips (Variable Cost)Flour (Variable Cost)Butter (Variable Cost)Sugar (Variable Cost)Eggs (Variable Cost)Vanilla (Variable Cost)Baking Soda (Variable Cost)Salt (Variable Cost)Bowls (Fixed Cost)Spatulas (Fixed Cost)Oven (Fixed Cost) The gas or electricity would be a variable costBaking Sheet (Fixed Cost)Cooking Rack (Fixed Cost)Mixer (Fixed Cost)Fixed Costs do not vary with Quantity. Variable Costs do vary with Quantity.
Is maintenance on production equipment a fixed variable or mixed cost?
fixed and variable
Is the salary of a lecturer a fixed or variable cost?
If salary is on per lecture basis then it is variable cost otherwise it is fixed cost.
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
How do you calculate your variable cost and fixed cost given total costs and sales volumes?
Total Costs = Fixed Cost + Variable Cost soVariable Cost = Total Costs - Fixed Cost.
Is it depreciation variable cost or fixed cost?
depreciation is classed as a fixed cost when using only the straight line method. reducing balancing method is classed as a variable cost.
How do you calculate fixed cost given total cost?
Fixed Cost - costs that do not vary with the quantity of output produced.The best example I can think of is when making Chocolate Chip Cookies. You need ingredients and supplies to make them:Chocolate Chips (Variable Cost)Flour (Variable Cost)Butter (Variable Cost)Sugar (Variable Cost)Eggs (Variable Cost)Vanilla (Variable Cost)Baking Soda (Variable Cost)Salt (Variable Cost)Bowls (Fixed Cost)Spatulas (Fixed Cost)Oven (Fixed Cost) The gas or electricity would be a variable costBaking Sheet (Fixed Cost)Cooking Rack (Fixed Cost)Mixer (Fixed Cost)Fixed Costs do not vary with Quantity. Variable Costs do vary with Quantity.
How do you calculate fixed and variable cost of various products?
First of all total cost of product is identified and after that using high and low method variable and fixed costs are segregated
Can the fixed cost be negative?
the fixed cost can be negative if and only if the basis of calculating the fixed cost is not realistic or representative such as the high low method that relies on extreme values only to ascertain the fixed and 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
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.
Is clerical salaries a fixed cost or variable cost?
its a fixed cost
When sales and cost is given how to calculate fixed cost?
1. Following are the methods to find fixed and variable costs if sales and cost is provided: 1 - High Low Method 2 - Scattered Diagram method 3 - Regression analysis method
What determines the difference between a variable and a fixed cost?
The relataionship of cost between the level of production is determine the fixed or variable cost if cost change with production level then it is variable cost otherwise fixed cost.
Is maintenance on production equipment a fixed variable or mixed cost?
fixed and variable
Production cost is which kind of cost variable or fixed cost?
variable
What is the the variable costs plus the fixed costs?
Type your answer here... fixed cost + variable cost = total cost
