Explain variable cost and fixed cost, Managerial Accounting

Assignment Help:

Explain variable cost and fixed cost

Variable costs: costs that vary almost in the direct proportion to the volume of production are known as variable costs. The examples of such costs are direct material, direct labour and indirect chargeable expenses, such as electric power, fuel etc.

Fixed costs: costs which do not vary with the level of production are called as fixed costs. These costs are called fixed because these remain constant irrespective of the level of output. It must, though, be noted that fixed costs do not remain constant for all times. In fact, it in the long run all costs have a tendency to vary. Fixed costs remain fixed up to a certain level of production.  

 


Related Discussions:- Explain variable cost and fixed cost

Multiple products, differentiate between multiple product, selling product ...

differentiate between multiple product, selling product and margin managent

Classification of costs, discuss which of the cost classification is suitab...

discuss which of the cost classification is suitable for LunchBreak LTD and why?

Calculate the net operating income , calculate the net operating income ,  ...

calculate the net operating income ,  evergreen corp has provided the following data: sales per period 1000 units ,selling price $ 40 per unit , variable manufacturing cost 12 p

Working capital management, A managerial accounting strategy focusing mainl...

A managerial accounting strategy focusing mainly on maintaining efficient levels of both components of working capital that is current assets and current liabilities, with respect

Capital asset pricing model, Cascade Water Company (CWC) currently has 30 0...

Cascade Water Company (CWC) currently has 30 000 shares of common stock outstanding, trading at a price of R42 per share.

Budget, advantage and disadvantage of incremental budget

advantage and disadvantage of incremental budget

Controlling material flow , Controlling material flow Figure below out...

Controlling material flow Figure below outlines the progressive stages in purchasing, issuing and recording materials in a manufacturing concern. An efficient system of docume

Risk-fundamental uncertainty-decision making environment, Risk : Risk i...

Risk : Risk includes circumstances or events that may or may not take place though whose probability of occurrence can be predicted from the past records. In this atmosphere, t

What is production cost, What is Production cost It begins with the sup...

What is Production cost It begins with the supplying of materials, labour and services and ends with the primary packing of the product. Therefore, it includes the cost of d

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd