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Variable costs are costs that typically vary in conjunction with the Company's volume of sales. For example, if we sell an additional unit of X, we will need to purchase unit Y which is one of the component sembedded in unit X.
Wiki User
∙ 15y ago
Wiki User
∙ 9y agoFixed costs are paid regardless of the level of production; machinery, buildings, overhead costs of support employees. Variable costs are related to the production process, such as the power used for running the machines, labour costs for making things, transport costs for shipping the goods.
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What are some examples of variable costs in a business?
One example of a variable cost in a business is labor costs because the amount of people a business employs fluctuates greatly, especially during the holiday season. Another example of a variable cost is the cost of materials.
What are examples of fixed and variable cost factory?
examples of fixed cost factory are salary, rent, electricity bills while variable cost are purchase of raw materials,
What are examples of fixed and variable cost in an airline company?
Some of the Variable costs are Fuel Cost, energy, and operating cost
What would probably be a variable cost in a soda bottling plant?
examples of variable cost in a soda bottling plant.
What are some examples of semi variable cost?
foil
Distinguish between fixed cost and variable cost?
A fixed cost is a cost (in the short-run) that does not change based on the production output in a business; i.e. no matter how many products a company makes/sells, these costs do not change. Examples include rent, salaries, and insurance. A variable cost is a cost (in the short-run) that changes based on the amount of output in a business; i.e. the cost increases if the company makes/sells more products, and vice-versa. Examples include wages, cost of goods sold, and income tax. Under classical economic theory, all costs are variable in the long-run.
What are examples of fixed and variable cost in business?
Variable Cost is like the things that you need in order to produce an item in whole. For example I want to produce a MacBook Pro. The variable costs would be what would be needed in order to make this MacBook. We are talking Capital, material such as the aluminium for the frame, LED Screen etc. All these things that are needed to produce an item would be the variable cost.
What is the difference between capacity cost and variable cost?
capacity cost : it is the cost which is incurred to increase its ability which can reduce or avoid by shutting down business variable cost: which varies with the output
What are examples of fixed and variable cost in a hairdressers?
FixedRentWages and SalariesHeatingLightingMarketing/AdvertisementVariableEquipmentFurniture
What must a business include when calculating its operating cost?
Variable costs.
What are examples of fixed and variable cost in transportation company?
Purchasing of motor vehicle is example of fixed cost while using fuel for running those motor vehicles is a variable cost.
What is the Difficulties to determined fixed cost and variable cost?
There has always been difficulties in identifying the fixes cost and variable cost for the business for almost all type of business. The cost like electricity cost,telephone cost, and fuel cost etc are the examples of the cost those add complexity in determining the fixed and variable cost. the Actual problem is that these cost occur both and at the production place and the managerial cost. For example the electricity cost increases as porpotion with the amount of the goods produced in the production plant where as it remain almost fixed in the offices.It is difficult to calculate which cost was occured at the office and on the production plant. The answe may not be satisfactory poeople can edit it.
