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What else can I help you with?
Under variable costing variable selling and administrative costs are included in product costs?
No. They are not.they are part of period costs.
What are the principles of break even analysis?
To calculate your break even point you need to total your fixed costs and your variable costs (separately) . The equation is fixed costs ÷ (price - variable costs). Variable costs are your costs associated with production. If u produce one additional unit variable cost will increase and fixed costs will not. When you reach your break even point you have covered all if your fixed costs (for the month, for example). All units sold after break even will bring net income for the period since your fixed costs are covered.
What would you expect to be the effect of a reduction in variable cost on the break even position and why?
The Break Even Position(B.E.P.) is the point at which your sales cover your variable costs(contribution) and also your fixed costs but render no profits- 0 = Sales-Variable Costs-Fixed Costs If the above equation is satisfied, then the sales value is taken as break even point. So if a reduction in variable expenses occur, the break even point will also reduce.
Are selling and administrative expenses treated as product costs or as period costs under variable costing?
Period Costs.
Are selling and administrative expenses treated as product costs or period costs under variable costing?
Period Costs.
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
How does the break even point change when you change the cost?
The break-even point changes inversely with fixed costs and directly with variable costs. If fixed costs increase, the break-even point rises, meaning more units must be sold to cover expenses. Conversely, if variable costs increase, the break-even point also increases, as each unit contributes less to covering fixed costs. Reducing costs, either fixed or variable, lowers the break-even point, allowing fewer sales to achieve profitability.
Fixed costs are those costs which are?
Fixed costs are assigned to all products. Variable costs are assigned only to the product that led to the 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.
Can you calculate the fixed cost variable costs and break-even point for the program suggested in Appendix D?
Calculate the fixed cost, variable costs, and break-even point for the program suggested in Appendix D.
How can you work out a break even cost in a signage industry?
Consider all your costs, fixed and variable, then subtract your total costs from the product of your income per unit sold multiplied by the units sold. The amount of units sold where this equation equals zero is the break even point.
The total cost is the sum of what?
When you see TC = Total Costs on a break even chart it stands for Variable, Semi-variable and fixed costs....thus the total cost.
