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it is important to separate variable and fixed costs. Another reason it is important to separate these costs is because variable costs are used to determine the contribution margin, and the contribution margin is used to determine the break-even point.

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Why it is sometimes difficult to separate costs into variable costs and fixed costs?

Some costs are semi-variable, e.g. electricity, maintenance, and rise with output but not inproportion. Labour may be fixed in the short run.


Why it is sometimes difficult to separate costs into variable and fixed costs?

Some costs are semi-variable, e.g. electricity, maintenance, and rise with output but not inproportion. Labour may be fixed in the short run.


What is the importance of fixed costs versus variable costs in making a business profitable?

The importance of knowing which costs are fixed and which costs are very important in making a business profitable. In order to budget effectively, one needs to know costs that will always be the same (fixed) and the ones that sometimes change (variable).


Variable costs are relevant and fixed costs are irrelevant?

Generally variable costs are relevant costs but if due to any decision fixed costs are also going to affected then fixed costs are also relevant costs.


How many types of cost?

There are variable and fixed costs. Businesses can manipulate the variable costs, but they cannot change their fixed costs in business.


What is the the variable costs plus the fixed costs?

Type your answer here... fixed cost + variable cost = total cost


Is Janatorial Costs a fixed mixed or variable cost?

The three types of cost you are referring to are Fixed, Semi Variable and Variable Costs. On a well though out COA the janitorial costs would fall under administrative costs. Thus fixed.


Examples of fixed costs and variable costs in hospital?

Fixed Costs: Salaries Variable Costs: Medicines, ambulance fuel, paper, "CEO & friends"benefits package.


Are variable costs included in operating costs?

Variable operating costs + fixed operating costs = total operating costs.


Do you subtract both fixed and variable from revenue to get profit?

Yes, to calculate profit, you subtract both fixed and variable costs from revenue. Fixed costs are expenses that do not change with the level of production, while variable costs fluctuate with production volume. The formula can be summarized as: Profit = Revenue - (Fixed Costs + Variable Costs). This gives you the net profit or loss for a given period.


Fixed costs and variable costs in a florist shop?

a fixed cost would be electricity bills and a variable costs would be paying employees a salary not wayes !


How do you determine total costs?

Total cost is determined by adding fixed costs and variable costs together. fixed cost + variable cost = total cost