that is so easy
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.
Total Variable Cost = Number of Units * Variable cost per unit
To calculate the Total Cost without Total variable cost, one should estimate for the variables or substitute for the variables with a variable such as X or Y and then solve for the approximate total cost.
Selling price = Total Cost (Total Variable cost + Total fixed cost) + profit margin
Average Variable Cost = Total Variable Cost/ Quantity Average Cost = Average Fixed Cost + Average Variable Cost Average Cost = Total Cost/Quantity
Variable cost per unit= Total Variable costs($ amount) divided by Production units
Absorption Costing (also known as traditional costing approach or full costing) absorbs all costs incurred to produce goods, which can result in misleading product cost information for decision-making. In absorption costing, fixed overheads are considered as product cost. These are added in the cost of inventory and not shown as separate item (period cost) in the income statement. The full cost includes cost of direct materials, direct labor, variable manufacturing overheads and fixed overheads. The absorption costing focuses only on total cost viz. variable and fixed and it is not useful for managers to take decision, plan about future and exercise control. The cost volume profit relationship is ignored because it takes into account the total cost. Absorption costing is suitable only in those companies where equal number of units are produced and sold. However, a business operates in a dynamic environment and production and sales keep on fluctuating on a regular basis. Therefore, as absorption costing is used in such a scenario, the cost will keep on fluctuating...
Restaurant Gross profit = Total generated revenue - total costing *total costing = fixed assets, stock in hand, manpower, utilities, rental and maintenance. *Gross profit=Revenues-Variable costs-fixed costs
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.
You can calculate the total revenue percentage by substituting the variable X for the monthly revenue, the variable Y for the period of time, and then multiple these to solve for the total revenue percentage.
Marginal costing is the method of costing for evaluating the changes in total cost due to change in number of units produced.
find the total for items costing $149.99 with sales tax of 5.75%
Marginal cost is change in total cost due to increase or decrease one unit or output. It is technique to show the effect on net profit if we classified total cost in variable cost and fixed cost.
I'm assuming you are talking about Absorption costing which is essentially the opposite of Variable Costing. Absorption Costing: Where all costs (Direct and Indirect) related to producing (Not Selling & Admin) a product are distributed evenly into the cost of the goods. Lets say we only used $5 worth of materials and $2.50 worth of labour to make a doll. There is also $1000 worth of fixed expenses related to making the doll. Under Variable Costing: the cost of making a doll is only the variable costs. Hence, the cost of 1 doll is 5+2.50 = $7.50/doll Under Absorption costing: Lets say we made 100 dolls ($10/doll worth of Fixed costs). The total cost of a doll would therefore but 5 + 2.50 + 10 = $17.50/doll I guess you could say that it absorbs the ALL the costs of manufacturing.
activity based costing does not promote TQM(total quality management) and continuous improvement but attribute based costing promotes the both.
Total Variable Cost = Number of Units * Variable cost per unit
Activity based Costing, Target costing, Just in Time,Total Quality Management,