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What happens to average variable cost if the marginal cost is less than it?
If the marginal cost is less than the average variable cost, the average variable cost will decrease.
Fixed cost are really variable the more you produce the less they become?
Yes, the fixed cost become variable the more a given produce is produced. As the produce declines so does the variable as well.
When the marginal cost is less than the average variable cost the average variable cost will?
decrease. Think about it this way, if you have a room full of people and you get their average height(average variable cost), and now each person that walks into the room(marginal cost) is shorter than the average, the average will drop.
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 the depriciation cost is variable cost?
yes..depreciation cost is the variable cost..
What happens to average variable cost if the marginal cost is less than it?
If the marginal cost is less than the average variable cost, the average variable cost will decrease.
Fixed cost are really variable the more you produce the less they become?
Yes, the fixed cost become variable the more a given produce is produced. As the produce declines so does the variable as well.
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
When the marginal cost is less than the average variable cost the average variable cost will?
decrease. Think about it this way, if you have a room full of people and you get their average height(average variable cost), and now each person that walks into the room(marginal cost) is shorter than the average, the average will drop.
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.
If you sold 3000 units at 500 each variable expense were 350 per unit and fixed expenses were 200000 what is the net income?
Sales = 1500000 Less. variable cost = 1050000 Less: fixed cost = 200000 Net income = 250000
A project has earnings before interest and taxes of 6500 fixed costs of 40000 a selling price of 12 a unit and a sales quantity of 10000 units Depreciation is 8500 What is the variable cost per unit?
Sales (10000 * 12) = 120000 Less: Fixed Cost = 40000 Less: Depreciation = 8500 Less: Variable Cost = 65000 (Balancing Figure) ---- PBIT = 6500 Variable Cost per unit = 65000/10000 = 6.5 per unit
Is janitorial cost a variable cost?
No, Janitorial Cost is not a variable cost, it is a Fixed Cost.
How do you calculate variable cost?
Variable cost = Total Cost/ fixed cost
Is the depriciation cost is variable cost?
yes..depreciation cost is the variable cost..
What is the formula to find the average variable cost?
Average Variable Cost = Total Variable Cost/ Quantity Average Cost = Average Fixed Cost + Average Variable Cost Average Cost = Total Cost/Quantity
Is the cost of fuel for vehicles a variable cost?
Variable cost: The cost change with the change in activity is called variable cost. So as much fuel used cost increased accordingly so it is variable cost.
