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What else can I help you with?
Is maintenance a fixed cost or variable cost?
It seems like it could be both. Variable because you have to do more maintenance as you increase production. Partially fixed because maintenance is necessary even if you don't product anything. If I were going to guess on an exam/homework, I'd go with variable though.
At zero production what are variable costs?
At zero production variable cost will be zero because variable cost is the cost occured for producing a product but their will be some fixed cost.
What does total cost of production include?
Variable Costs and fixed costs
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.
What is Definition of law of variable proportion?
The law of variable proportion is basically a study of production functions. The factors used include fixed and variable factors.
Is maintenance a fixed cost or variable cost?
It seems like it could be both. Variable because you have to do more maintenance as you increase production. Partially fixed because maintenance is necessary even if you don't product anything. If I were going to guess on an exam/homework, I'd go with variable though.
Is straight-line depreciation on equipment fixed or variable?
It is considered as fixed overhead cost because it doesn't dependant on level of production
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 do fixed cost different from variable cost?
Variable costs are different in this sense that fixed cost remains fixed and it has no impact of change in production level while variable cost changes with the change in production level.
Production cost is which kind of cost variable or fixed cost?
variable
Is depreciation on equipment fixed or variable?
Depreciation is a fixed cost because variable cost is that cost which change with the change in the production units but it doesn't put any effect on depreciation as depreciation of the equipment will remain same no matter you produce maximum number of units or produce no unit in fiscal year.
Is sales promotion cost a variable cost?
If it varies with the level of production then it is variable cost otherwise it is fixed cost.
Is maintenance and depreciation fixed costs?
Maintenance costs can be considered fixed costs if they remain constant regardless of production levels, such as regular upkeep of equipment. Depreciation is also typically classified as a fixed cost, as it represents the allocation of an asset's cost over its useful life, independent of production volume. However, some maintenance costs can vary with usage, making it essential to analyze each case individually.
Is depreciation on office equipment classified as a variable or fixed cost?
Depreciation on office equipment is classified as a fixed cost. Fixed costs are expenses that do not change with the level of production or sales, and depreciation remains constant over time regardless of how much the office equipment is used. This makes it a predictable expense that businesses incur regardless of their activity level.
Is direct material and labor a fixed cost?
If direct material and direct labor remains fixed irrespective of production volume then these are fixed costs otherwise these are variable costs and normally these are variable costs because it varies with the production volume.
Do you subtract both fixed and variable from revenue to get profit?
Yes, to calculate profit, you subtract both fixed and variable costs from revenue. Fixed costs are expenses that do not change with the level of production, while variable costs fluctuate with production volume. The formula can be summarized as: Profit = Revenue - (Fixed Costs + Variable Costs). This gives you the net profit or loss for a given period.
At zero production what are variable costs?
At zero production variable cost will be zero because variable cost is the cost occured for producing a product but their will be some fixed cost.
