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
You sell a machine for $600,000. You allow the client to pay 1/3 at the time of the sale and 1/3 at the end of year one and 1/3 at the end of year two. The company earns 10% on ass

REPORT ON SATYAM

A foreign company plans to clear several dozen acres of ecologically valuable mangrove swamp in Vietnam for the creation of a shrimp aquaculture facility.  This decision will creat

Cube Manufacturing began two jobs during May 200X. The company had no beginning inventory. The following information is available:

Mr. Homer Simpson, President and Chief Executive Officer of Duff's Beer Making Supplies Inc. recently hired you as the new budget analyst for his company.  As your first duty, he h

The balance sheet and income statement for Bingle Ltd is presented to you as follows: Balance Sheet Extract as at 30 June 2012 with comparatives

Cash is the other form of fund although in a narrow sense, this refers to a supply which can be drawn upon as per to the need. Here the term cash involves both cash and cash equiva

how variable cost help in decision making.with suitable example

Q. Issues to consider when making decisions? At activity level A it can be seen from diagram that sales revenue line intersects the total cost line specifying that this is the

hml analysis , sde analysis,sos analysis, golf analysis , xyz analysis