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Vague question. Here's my attempt. Simple cost is an accumulation of input costs. It is important to include all costs. i.e.(time, material, overhead).
It can be actual costs or replacement costs. That gets into pricing, accounting, taxation, and banking. I recommend looking in financial accounting and cost accounting to see which fits best.
A general rule: Total manufacturing costs/ total produced units
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How do you calculate total vaiable cost per unit?
Total Variable Cost divided by Quantity of Output
What are the total costs to make a quantity of 15000 units per year with a fixed cost of 100000 per year and a variable costs of 4.00 per unit?
Total Cost = Variable Cost + Fixed CostVariable Cost = 4 per UnitTotal Units to produce = 15000Variable Cost = 15000 * 4 = 60000Total Cost = 60000 + 100000Total Cost = 160000
What is the cost per unit called?
Each. ie, 12 cents each or $5.00 ea.
Why is fixed cost variable and variable cost fixed?
Well, you first have to look at fixed and variable costs in total as well as on a per unit basis. Fixed costs remain the constant (or fixed) in total. However, on a per unit basis they aren't constant (variable). As units produced increase (or whatever activity base) then the fixed cost per unit decreases. Fixed example: If rent is $8,000, then the total rent will still be $8,000 every month whether or not the company makes 100 products during the period or 1,000. However, using the 100 and 1,000 units as an example, the per unit cost decreases. When the company makes 100 units, the fixed cost per unit is $80 ($8,000/100 units). When the company makes 1,000 units, the fixed cost per unit is $8 ($8,000/1,000 units). The opposite applies for variable costs. Variable costs, by their nature, change with the change in units produced (or again, any other activity base the company uses, such as machine hours or labor hours). Therefore, there will be a different total for 100 units produced and 1,000 units produced. However, the unit cost never changes. Variable example: If a product that a company produces requires a certain part, this is a variable cost. Let's say the cost of the part is $10. The total variable cost for 100 units is $1,000 ($10*100 units), and for 1,000 units it's $10,000 ($10*1,000 units). However, in each case, the variable cost per unit remained at $10. Hope this is what you were looking for!
What is the minimum acceptable transfer price for a division with excess capacity where the variable coat per unit is 8 fixed cost per unit is 5 and selling price per unit is 30?
The minimum acceptable transfer price for a division with excess capacity would be the variable cost per unit, which in this case is 8. This is because the division has excess capacity and is able to produce the goods at a lower cost than the selling price, so it would make sense to transfer the goods to another division or sell them to an external customer at a price that is at least equal to the variable cost per unit. If the division were to transfer the goods to another division or sell them to an external customer at a price that is lower than the variable cost per unit, it would not cover its variable costs and would be operating at a loss. On the other hand, if the division were to transfer the goods to another division or sell them to an external customer at a price that is higher than the variable cost per unit, it would be able to cover its variable costs and potentially earn a profit. It's worth noting that the fixed costs of the division are not relevant to the minimum acceptable transfer price, as these costs have already been incurred and cannot be avoided. The division would need to consider the fixed costs when determining its overall profitability, but they do not affect the minimum acceptable transfer price for the goods. My recommendation: ππ π½βο½οΌ°Ε://Ε΄Οπ.ΰΉΞΉαΆΞ―ππ£Οπ»α΄ββΉ.Δπο½/π£β¬πΞΉβ/βΈββ·βΊοΌοΌ/ππ·πππΚ·ππ¨πΓο½π¬/ β―π
How do you calculate variable cost per unit?
Variable cost per unit = Total variable cost / total number of units manufactured
How do you calculate breakeven analysis?
Fixed cost / (selling price - Variable cost per unit) --> Fixed cost ----------------------------------------------- (Selling Price - Variable Cost Per Unit)
How to calculate total variable cost per unit?
Easiest way: Total costs per unit - fixed costs per unit = variable cost per unit. Also recatting into accounting.
How do you calculate total vaiable cost per unit?
Total Variable Cost divided by Quantity of Output
When designing a costing system it is easiest to calculate total cost first and then per unit cost?
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How do you calculate selling price that involve carriage cost?
Carriage is transportation cost. If you are selling the product in your store, you would calculate how much it cost to transport the goods to your store, then factor in the per unit shipping cost. Do a simple COGS (cost of goods sold) calculation. Add the per unit shipping cost to the cost make or buy the product per unit, then add your profit mark-up, say 30%.
Calculate the contribution margin per unit?
Contribution margin per unit is calculated by subtracting the variable cost of the item from the selling price of the item.
What data is used to calculate the break even point?
Following data is required to calculate break even point: 1 - Sales revenue or sales price per unit 2 - variable cost per unit 3 - fixed cost
What is direct Cost per unit?
Direct cost per unit is that cost of unit incurred to manufacture one unit of product.Formula for direct cost per unit = total direct cost / total number of units.
How do you calculate break even point when average selling price is 180 per unit variable cost is 126 per unit and fixed cost is 540000 per year?
540,000/(180-126) = 10,000 units ($1,800,000 in Sales)
Why is cost accounting essential for management?
Cost accounting is used to calculate the per unit cost of product so if the management does not know the per unit product price they will not able to set the selling price of product and determine the profit per unit which they can earn and so many other important decision like these are dependent on cost accounting.
How do you calculate units?
Cost of case divided by number of units. For example you bought a dozen eggs for $ 24.. what is the unit price per egg? $24 / 12 = $2 per egg. or say you are calculating the cost of manufacturing 1 unit.. given: the cost of manufacturing 2000 units of product ABC is as follow, find unit price? Total material cost $ 5000 Total labour cost $ 4000 Other expenses $ 1000 ---------- total cost of manufacturing $ 10000 solution: Total Cost/ no. of unit manufactured 10000/2000 = $5 per unit
