Variable costs, Cost Accounting

Variable Costs

Are costs such raise or fall proportionately along with the level of activity that is such portion of the cost of an activity which changes along with the level of output.

149_Variable Costs.png

Notice here that along with variable costs, the cost level is zero while production is zero. The cost rise in proportion to the rise in the activity level, hence the variable cost function is represented via a straight line from the origin. The gradient of the function signify the variable cost per unit.

Posted Date: 2/5/2013 3:01:47 AM | Location : United States







Related Discussions:- Variable costs, Assignment Help, Ask Question on Variable costs, Get Answer, Expert's Help, Variable costs Discussions

Write discussion on Variable costs
Your posts are moderated
Related Questions
Process Losses Most manufacturing processes result in several portion of the raw materials utilized not being transformed into a reliable half losses.  These losses may take t

Cost Account Ledger System A cost account ledger system is essential to analyze accounting information in order such costs may be accumulated for individual cost centers and c

Denair Fine Wines, Inc., is planning to bring out a higher-quality wine product than any currently available in Stanislaus county. They've decided on selling the blended, fortified

Example of Over and under absorption of production overhead costs By employing data from diagram assume such the production overhead absorption rate was computed where an acti

If a company trades in a building towards a new building and does not recognize a gain or loss (because of code section 1031), will this transaction affect the cash flows statement

You work for a firm of accountants as a junior accounts assistant and part of your role is to prepare clients' ledgers accounts from incomplete records. A client of the firm you

a factory operates a small canteen but its annual operation has consistently shown a loss:

what is the purpose of cost accounting and its nat ure?

During his career in the energy industry, T-Bone McAdams has accumulated $5,000,000 in "surplus savings" that he is planning to donate to his college alma mater, Oklahoma A&M, in

Cal Farms reported a supplies expense of $2,000,000 a year. The supplies amount decreased by 200,000 during the year to an ending balance of $400,000. What was the cost of supplies