0
What else can I help you with?
Are selling costs variable costs?
If selling costs varies with production level then selling costs are variable costs but if they remain fix then these are fixed costs.
Are selling expenses fixed or variable cost?
selling expenses is a mixed costs. it is a mixture of both fixed and variable components. for example, in selling expenses in a retail shop; fixed costs are the employees salary. while variable cost will be their commission or bonus of the sale.
What does total cost of production include?
Variable Costs and fixed costs
What is the non crash cost of driving?
The noncrash costs of driving include operating costs, fixed costs, and environmental costs. Operating costs include: gas, oil, and tires. The more you drive, the greater your operating costs. Fixed costs include: the purchas price of the vehicle, insurance, and licensing fees.
What causes the break even point to increase or decrease?
The break-even point increases when fixed costs increase or selling price decreases. It decreases when fixed costs decrease or selling price increases. Changes in variable costs or sales volume can also impact the break-even point.
Is selling and distribution costs fixed or variable costs?
Selling and distribution costs are typically considered variable costs because they fluctuate with the level of sales or production. For instance, expenses like commissions, shipping, and packaging often increase as more products are sold. However, some components, such as salaries of permanent sales staff, can be fixed costs. Overall, the classification depends on the nature of each specific cost within the selling and distribution category.
What are the examples of fixed costs?
Fixed Costs are expenses that don't change based on production or sales volumes. They include salaries, rent, insurance, accountancy costs. Variable Costs are expenses that vary based on production volumes. They include material, labor, utilities, and delivery costs
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 do you calculate breakeven point?
breakeven point (units) = fixed costs/contribution contribution = selling price - variable costs per unit
How can one determine fixed costs if they are not provided?
To determine fixed costs when they are not provided, you can analyze the company's financial statements and identify expenses that do not change regardless of production levels. These may include rent, insurance, salaries, and utilities. By subtracting variable costs from total costs, you can estimate fixed costs.
Is total cost equals semi variable cost?
No. Total cost includes fixed costs, too. Even Semi Variable costs include Fixed costs...??? So whats the difference?
Is direct material a selling cost?
is direct cost a? Selling cost, manufacturing costs, direct, manufacturing cost indirect, general and administrative cost, fixed cost , variable cost, is direct cost a? Selling cost, manufacturing costs, direct, manufacturing cost indirect, general and administrative cost, fixed cost , variable cost,
