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Capital requirements can be categorized into fixed and variable capital. Fixed capital refers to long-term investments in physical assets, such as machinery, buildings, and equipment, necessary for the production process. Variable capital, on the other hand, pertains to short-term investments in resources that fluctuate with production levels, such as raw materials and labor costs. Together, these components determine the total capital needed for a business to operate effectively.
What else can I help you with?
How would you describe the requirement of production?
Land,Labour,Physical Capital,Fixed Capital,Working Capital and Human Capital.
What determines the difference between a variable and a fixed cost?
The relataionship of cost between the level of production is determine the fixed or variable cost if cost change with production level then it is variable cost otherwise fixed cost.
How can one determine the variable cost when given the fixed cost in a business scenario?
To determine the variable cost in a business scenario when given the fixed cost, you can subtract the fixed cost from the total cost. Variable costs are expenses that change based on the level of production or sales, while fixed costs remain constant regardless of production levels. By subtracting the fixed cost from the total cost, you can isolate the variable cost component.
Why variable cost is that it ignore the increasing importance of fixed cost in modern manufacturing?
variable cost ignore the increasing importance of fixed cost in order to determine thecost of production.on computing the cost of production we basing on variable cost because variable cost change as productivity change that we eliminate the fixed cost to determine cost of production.
How do you determine total costs?
Total cost is determined by adding fixed costs and variable costs together. fixed cost + variable cost = total cost
Why is it important to separate variable and fixed costs?
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.
A company has two option. buy or make. if buy then 10 variable cost and 600 fixed cost. if make 8 variable cost and 50000 fixed cost. annual requirement 20000. Find Breakevenpoint in excel chart?
Breakeven point cannot be find out until sales revenue or selling price is not provided only the fixed and variable cost is not enough.
What do you call a symbol that can represent a quantity?
VARIABLE. When this variable has a fixed number assigned to it and does not change, it is called a "fixed variable".
The difference between fixed and variable inputs?
difference between fixed and variable inputs
Is bullock cart a fixed capital or working capital?
fixed capital
Is overtime pay fixed or variable?
Variable
Is freight in a variable of fixed cost?
Variable
