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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.
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.
ANALYSIS OF VARIANCE When the actual are not similar from the standards, variance exists. Variance may be unfavorable or favorable. When the actual cost is more than the standa
Limitations of Marginal Costing
Labour Costs and Overhead costs Labour Costs Labour costs can be indirect or direct labour costs. Direct labour cost refers to wages paid to workers who such are directly
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