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Semi Variable Costs
Are costs along with both a fixed and variable cost component? The fixed component is such portion that is constant irrespective of the level of activity. They are variable inside specific activity levels however are fixed in other activity levels, as displayed below:
Figure : Semi Variable Cost
Quicksilver Compnay has set the follwoing standards for one unit of product: Direct material Quantity: 6.2 lbs per unit Price per lb: $11 per lb Direct Labor Quantity: 6 hrs
DIFERENCE BETWEEN MARGINAL AND DIFFERENTIAL COSTING
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How to calculate adjustments
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Marginal analysis finds to equalize the cost of producing one more item (marginal costs) with the revenue gained from selling one more item (marginal revenue).
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