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Why are variable costs more relevant than fixed costs in short-term decision making?
Fixed costs are costs that cannot be changed in the short-term without causing significant harm to the organization. Because you cannot change them, you should not consider them in comparative analysis of alternatives.
What do you call a symbol that can represent a quantity?
VARIABLE. When this variable has a fixed number assigned to it and does not change, it is called a "fixed variable".
Ensco Lighting Company has fixed costs of 100000 sells its units for 28 and has variable costs of 15.50 per unit?
Break-even is 8,000 units. 100,000/(28-15.50)=8,000
In 2x plus y what are the variables?
A variable is a number that isn't fixed, it can be anything. So in this situation x and y are the variables.
What is the total cost formula?
Total cost = cost per unit x units produced or Total cost = cost per unit x units sold or Fixed costs + Variable costs
What are variable direct costs?
They are costs that involve an element of both fixed and variable costs eg a telephone bill involves line rental (fixed) plus cost for calls made (variable)
What are semi variable direct costs?
They are costs that involve an element of both fixed and variable costs eg a telephone bill involves line rental (fixed) plus cost for calls made (variable)
How is the total cost of a factory or other production site determined?
Fixed costs plus variable costs.
How is the total cost of a factory of other production site determined?
Fixed costs plus variable costs.
Variable costs are relevant and fixed costs are irrelevant?
Generally variable costs are relevant costs but if due to any decision fixed costs are also going to affected then fixed costs are also relevant costs.
How many types of cost?
There are variable and fixed costs. Businesses can manipulate the variable costs, but they cannot change their fixed costs in business.
Is this true that total costs are equal to fixed cost plus variable cost per unit?
No fixed costs do not change where variable do depending on market and amount ordered among other varies.
Is Janatorial Costs a fixed mixed or variable cost?
The three types of cost you are referring to are Fixed, Semi Variable and Variable Costs. On a well though out COA the janitorial costs would fall under administrative costs. Thus fixed.
Examples of fixed costs and variable costs in hospital?
Fixed Costs: Salaries Variable Costs: Medicines, ambulance fuel, paper, "CEO & friends"benefits package.
Are variable costs included in operating costs?
Variable operating costs + fixed operating costs = total operating costs.
What is fixed costs plus variable costs?
Fixed costs are costs that DO NOT change in response to changes to activity levels.Variable costs are costs that change in proportion to changes in volume or activity.It's simple, you just have to remember:Fixed cost:Total - DO NOT changePer unit -CHANGES (usually, decrease)Variable cost:Per unit - SAMETotal -CHANGES
How do you determine total costs?
Total cost is determined by adding fixed costs and variable costs together. fixed cost + variable cost = total cost
