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What else can I help you with?
If average cost increases does marginal cost increase?
It depends if the increase in Average Cost is caused by an increase in Fixed Costs or an increase in Variable Costs. An increase in Fixed Costs will not increase MC, because FCs do not vary with output (by definition) And increase in Variable Costs will increase MC
Are variable costs included in operating costs?
Variable operating costs + fixed operating costs = total operating costs.
What is the difference between average total costs and average variable costs?
Average total cost is the average of all your costs. This is your Fixed Costs and your Variable costs. Average Variable Cost is the average of your costs that can fluctuate.
How can fixed costs be determined without considering variable costs?
Fixed costs can be determined without considering variable costs by identifying expenses that remain constant regardless of production levels or sales volume. These costs do not change based on the level of output and can be calculated separately from variable costs.
What is happening to average variable costs when they equal marginal costs?
When average variable costs equal to the average marginal cost, the average variable cost will be at the minimum point. i.e. lowest cost
If average cost increases does marginal cost increase?
It depends if the increase in Average Cost is caused by an increase in Fixed Costs or an increase in Variable Costs. An increase in Fixed Costs will not increase MC, because FCs do not vary with output (by definition) And increase in Variable Costs will increase MC
What is the definition of a variable?
operational definition of a manipulated variable
Is real costs is same as variable cost?
Real costs and variable costs are not the same, though they can overlap. Real costs typically refer to the actual costs incurred in production, including both fixed and variable costs, while variable costs specifically change with the level of production, such as materials and labor directly associated with output. In summary, while all variable costs are real costs, not all real costs are variable costs.
What things do variable costs include?
Variable costs vary depending on a company's production. Production, or output, and costs are included in variable costs. Production and costs are directly related.
Are variable costs included in operating costs?
Variable operating costs + fixed operating costs = total operating costs.
What is the definition of a manipulated variable?
operational definition of a manipulated variable
What is the difference between average total costs and average variable costs?
Average total cost is the average of all your costs. This is your Fixed Costs and your Variable costs. Average Variable Cost is the average of your costs that can fluctuate.
Are selling costs variable costs?
If selling costs varies with production level then selling costs are variable costs but if they remain fix then these are fixed costs.
Examples of semi variable direct costs?
An example of semi variable direct costs is wages. Since semi variable costs are partially fixed and variable, regular labor is fixed costs, as production rises and workers have overtime the overtime is considered the variable cost.
Under variable costing variable selling and administrative costs are included in product costs?
No. They are not.they are part of period costs.
Are all direct cost are variable?
Yes generally direct costs are variable costs but there may be some direct costs which can be fixed costs as well.
What is the three major costs?
The three major costs in business typically refer to fixed costs, variable costs, and semi-variable costs. Fixed costs remain constant regardless of production levels, such as rent and salaries. Variable costs fluctuate with production volume, like materials and labor. Semi-variable costs have both fixed and variable components, such as utility bills, which can vary based on usage but also have a base charge.
