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Variable amounts are amounts that change frequently. Variable amounts are commonly used by Accountants in a manufacturing company. When products are made there are certain things that cost money but can vary. These costs are important to ensure the coverage of overhead. Some example include direct labor, direct materials, and utilities like electricity and water. These are variable as they may change. You may find a cheaper vendor providing the materials at a cheaper rate. Or, the cost of material may go up due to the rise if fuel costs.

The opposite is true of fixed costs. Fixed costs is a set amount of expenses per month. Some examples are rent or insurance premiums. For the most part, these are fixed on a month to month basis. To get the cost per unit of product made the amount is divided by the number of units made. The cost per item made may go down if there is an increase in the amount manufactured. If the amount manufactured decreases then the cost per unit goes up. Overall, the cost paid per month is steady.

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Is bad debt expense a variable cost expense?

According to The Entrepreneur's Guide to Writing Business Plans and Proposals that can be found in google books, bad debt expense is a variable expense because the amount of bad debt depends on the amount of sales.


What statement about municipal bonds is not true?

For each bond, there is a variable amount of interest that is paid to the purchaser.


Firms with a high degree of operating leverage are?

Have a high amount of fixed costs relative to their variable costs. DOL= CM / Net Income We derive CM by the eqaution of Selling Price - Variable Costs If a firm has high variable costs relative to their selling price then they will have a small CM and therefore their DOL will decrease. Have a high amount of fixed costs relative to their variable costs. DOL= CM / Net Income We derive CM by the eqaution of Selling Price - Variable Costs If a firm has high variable costs relative to their selling price then they will have a small CM and therefore their DOL will decrease.


How can I calculate the monthly payments for a variable rate mortgage?

To calculate the monthly payments for a variable rate mortgage, you would typically need to know the loan amount, the interest rate, and the loan term. You can use an online mortgage calculator or a formula to determine the monthly payment amount based on these factors. Keep in mind that with a variable rate mortgage, the interest rate can change over time, so your monthly payments may also fluctuate.


Can you explain how a variable interest rate works?

A variable interest rate is a rate that can change over time based on market conditions. This means that the interest rate on a loan or savings account can go up or down, affecting the amount of interest you pay or earn. Variable rates are often tied to an index, such as the prime rate, and can fluctuate periodically.

Related Questions

What is the independent variable in science?

amount of light amount of water amount of force amount of heat etc.the variable that changes and the one that the dependent variable depends on to change


What is an independemt variable?

An independent variable is the variable in the experiment that affects the other variable. For example, in an experiment that tests the affect of the amount of fertilizer on plant growth, the amount of fertilizer is the independent variable and the plant growth is the dependent variable. This is because the plant growth DEPENDS on the amount of fertilizer.


What is the ratio that compares the amount of chage in a dependent variable to the amount of change in an independent variable?

Rate of Change


What is a ratio that compares the amount of change in a dependent variable to the amount of change in an independent variable?

rate of change. :)


What is a ratio that compares the amount of change in the dependent variable to the amount of change in the independent variable?

rate of change. :)


What is a dependent variable in research?

The dependent variable is the variable that the researcher does not control. The researcher will change one variable called the independent variable (ex. temperature, amount of sunlight, amount of food, etc.) and then observe the corresponding dependent variable (ex. reaction of organism, amount of plant growth, swimming speed, etc.)


What is indepenedent variable?

an independent variable will not change with the amount of matter present. Think of it as being independent of the amount of material that is there


What are the examples of stock variable and flow variable?

A stock variable measures a variable at a specific point in time, for example the amount of foreign direct investment at the moment in a specific country. This variable is only denominated in terms of a currency. A flow variable on the other hand looks at the measure of a variable over a period of time, for example the GDP of a country as this variable looks not only at a fiscal amount but also also a time amount (in this case the amount of money spent in the economy over the course of a year).


What is is the variable in this study?

amount of moisture!


What is x when in an expression it is the form of x?

'x' is a fixed but unknown amount. It is not a VARIABLE!!!!


What is the variable in the expression 4y plus 9?

4y + 9The variable is Y. The variable is the letter (the unknown amount)


Is pounds an independent variable?

Pounds is a unit. Amount of pounds sold could be an independent variable (and money made being the dependent variable). On the other hand, amount of pounds sold could be the dependent variable, and time could be the dependent variable. Pounds is just a unit.