What's the difference between a Fixed Coat and a Variable Cost?
Q. how do you know if one's fixed or variable? don't gimme those typical answers like fixed cost is a cost that in total does not increase as output increases cuz i have NO idea what that means... oh~and what does "depretiation on the factory" mean? does that mean that the price of the factory depretiates? and is that a fixed or variable cost?
Asked by DDONA - Wed Oct 15 04:25:30 2008 - - 6 Answers - 1 Comments
A. I think you should have fixed and variable by now, so I'll work on the depreciation part. Depreciation is basically taking an expense over time. When you buy things to make products, you normally would expense (charge against current income) for things that will be used up right away, like say electricity, rent, etc., but when you buy things that will not be used up right away you should not expense it all at once, but over the useful life (the aprox. time it will be helping you produce goods for sale). So let's say you buy a new machine to make a product. The machine costs a lot of money, and will be useful for many years. You will 'depreciate' it, that is expense against income, only a portion of the original cost of the machine that… [cont.]
Answered by robrobiii - Wed Oct 15 09:05:21 2008
Q. how do you know if one's fixed or variable? don't gimme those typical answers like fixed cost is a cost that in total does not increase as output increases cuz i have NO idea what that means... oh~and what does "depretiation on the factory" mean? does that mean that the price of the factory depretiates? and is that a fixed or variable cost?
Asked by DDONA - Wed Oct 15 04:25:30 2008 - - 6 Answers - 1 Comments
A. I think you should have fixed and variable by now, so I'll work on the depreciation part. Depreciation is basically taking an expense over time. When you buy things to make products, you normally would expense (charge against current income) for things that will be used up right away, like say electricity, rent, etc., but when you buy things that will not be used up right away you should not expense it all at once, but over the useful life (the aprox. time it will be helping you produce goods for sale). So let's say you buy a new machine to make a product. The machine costs a lot of money, and will be useful for many years. You will 'depreciate' it, that is expense against income, only a portion of the original cost of the machine that… [cont.]
Answered by robrobiii - Wed Oct 15 09:05:21 2008
How do you calculate the variable cost per unit?
Q. Sales Revenue 350,000 Variable Cost (203,000) Contribution Margin 147,000 Fixed Cost (79,800) Net Income 67,200 So, how do you get the variable cost per unit if a company manufactured 17,000 picture frames and sold 15,000 picture frames?
Asked by acctstdt - Tue Nov 27 17:29:18 2007 - - 1 Answers - 0 Comments
A. Variable cost divided by units manufactured
Answered by Joe - Tue Nov 27 17:44:11 2007
Q. Sales Revenue 350,000 Variable Cost (203,000) Contribution Margin 147,000 Fixed Cost (79,800) Net Income 67,200 So, how do you get the variable cost per unit if a company manufactured 17,000 picture frames and sold 15,000 picture frames?
Asked by acctstdt - Tue Nov 27 17:29:18 2007 - - 1 Answers - 0 Comments
A. Variable cost divided by units manufactured
Answered by Joe - Tue Nov 27 17:44:11 2007
Calculating Variable and Fixed costs given only numbers produced and total cost?
Q. How do I figure this out if I don't have price per hamburger? In a slow year, Deutsche Burgers will produce 2 million hamburgers at a total cost of $3.5 million. In a good year, it can produce 4 million hamburgers at a total cost of $4.5 million. What are the fixed and variable costs of hamburger production?
Asked by kenmdavisjr - Sun Feb 1 18:34:11 2009 - - 1 Answers - 0 Comments
A. This is when you use the high low method. Qty 4m = TC $4.5m Qty 2m = TC $3.5m --- -- Qty 2m = TC $1.0m VC per unit = $1.0m / 2m = $0.50 Put this into any of the Qty top get the FC, Qty 4m --> TC = FC + VC $4.5m = FC + (4m x $0.50) FC = $2.5m There you go. Cheers...
Answered by adiwsusanto - Mon Feb 2 00:13:10 2009
Q. How do I figure this out if I don't have price per hamburger? In a slow year, Deutsche Burgers will produce 2 million hamburgers at a total cost of $3.5 million. In a good year, it can produce 4 million hamburgers at a total cost of $4.5 million. What are the fixed and variable costs of hamburger production?
Asked by kenmdavisjr - Sun Feb 1 18:34:11 2009 - - 1 Answers - 0 Comments
A. This is when you use the high low method. Qty 4m = TC $4.5m Qty 2m = TC $3.5m --- -- Qty 2m = TC $1.0m VC per unit = $1.0m / 2m = $0.50 Put this into any of the Qty top get the FC, Qty 4m --> TC = FC + VC $4.5m = FC + (4m x $0.50) FC = $2.5m There you go. Cheers...
Answered by adiwsusanto - Mon Feb 2 00:13:10 2009
How to calculate" break even revenue " when variable cost and selling price is changing every year?
Q. HI How to calculate break even revenue when variable cost and selling price is changing every year? what is the formula to calculate break even revenue under such circumstances? thank you all ???
Asked by bharath k - Fri Jul 18 17:02:24 2008 - - 1 Answers - 0 Comments
A. You have a formula where n is number of units VC is variable cost per unit FC is fixed cost SP is selling price per unit so break even is when n(VC)+FC=n(SP) To solve it you need to know 3 of the 4 unknowns! (FC could = 0)
Answered by DIXIE - Sat Jul 19 09:13:11 2008
Q. HI How to calculate break even revenue when variable cost and selling price is changing every year? what is the formula to calculate break even revenue under such circumstances? thank you all ???
Asked by bharath k - Fri Jul 18 17:02:24 2008 - - 1 Answers - 0 Comments
A. You have a formula where n is number of units VC is variable cost per unit FC is fixed cost SP is selling price per unit so break even is when n(VC)+FC=n(SP) To solve it you need to know 3 of the 4 unknowns! (FC could = 0)
Answered by DIXIE - Sat Jul 19 09:13:11 2008
how to calculate the total variable cost in the short Run?
Q. what is the formula for figuring out the Total Variable cost at the short Run?
Asked by eiwo2so - Thu Nov 15 07:02:22 2007 - - 1 Answers - 0 Comments
A. The variable cost is any part of the cost function which has the number of units as part of it. i.e. in 3x^2 +2x + 300, the variable cost part is the 3x^2 + 2x part. Over the short run, you need a time period of interest or a certain number of units. It depends on how the short run is defined. In any case, just use the designated value of x to solve.
Answered by stevemorris1 - Thu Nov 15 07:08:02 2007
Q. what is the formula for figuring out the Total Variable cost at the short Run?
Asked by eiwo2so - Thu Nov 15 07:02:22 2007 - - 1 Answers - 0 Comments
A. The variable cost is any part of the cost function which has the number of units as part of it. i.e. in 3x^2 +2x + 300, the variable cost part is the 3x^2 + 2x part. Over the short run, you need a time period of interest or a certain number of units. It depends on how the short run is defined. In any case, just use the designated value of x to solve.
Answered by stevemorris1 - Thu Nov 15 07:08:02 2007
Please help with fixed and variable cost question?
Q. Costs can be classified into two categories, fixed and variable costs. These costs behave differently based on the level of sales volumes. Suppose we are running a restaurant and have identified certain costs along with the number of annual units sold of 1000. Item: Raw Materials (cost for hamburgers) Total Annual Cost: 650 Item: Building Rent Total Annual Cost: 9000 Identify which cost item above is fixed and variable and why? What is the cost per unit of each? Suppose we increased our sales volume to 6000 units and then to 8000 units the following year (and are still within the relevant range), what would be the total annual cost and unit cost of fixed and variable costs?
Asked by Lindsay P - Thu Aug 23 22:45:37 2007 - - 1 Answers - 0 Comments
A. Put simply, fixed costs are money that has to be paid even if you dont sell a single item. Example: rent, insurance, telephone, vehicle pyments, Heating, business tax etc. Variable costs are money that is spent in proportion to sales. Example: raw material, labor, fuel, electricity, etc. Depending on your business, statistics are available concerning the percentageof sales you should be paying for variable costs. If your labor costs are too low in proportion to your sales you are not giving good service; if too high, your employees are wasting time. As your sales increase the percentage of fixed costs will automatically decrease and thereby your profits will increase all things being equal. It is important to price the items you sell… [cont.]
Answered by adam k - Thu Aug 23 23:20:31 2007
Q. Costs can be classified into two categories, fixed and variable costs. These costs behave differently based on the level of sales volumes. Suppose we are running a restaurant and have identified certain costs along with the number of annual units sold of 1000. Item: Raw Materials (cost for hamburgers) Total Annual Cost: 650 Item: Building Rent Total Annual Cost: 9000 Identify which cost item above is fixed and variable and why? What is the cost per unit of each? Suppose we increased our sales volume to 6000 units and then to 8000 units the following year (and are still within the relevant range), what would be the total annual cost and unit cost of fixed and variable costs?
Asked by Lindsay P - Thu Aug 23 22:45:37 2007 - - 1 Answers - 0 Comments
A. Put simply, fixed costs are money that has to be paid even if you dont sell a single item. Example: rent, insurance, telephone, vehicle pyments, Heating, business tax etc. Variable costs are money that is spent in proportion to sales. Example: raw material, labor, fuel, electricity, etc. Depending on your business, statistics are available concerning the percentageof sales you should be paying for variable costs. If your labor costs are too low in proportion to your sales you are not giving good service; if too high, your employees are wasting time. As your sales increase the percentage of fixed costs will automatically decrease and thereby your profits will increase all things being equal. It is important to price the items you sell… [cont.]
Answered by adam k - Thu Aug 23 23:20:31 2007
how do you calculate a variable cost for break even?
Q. how do you calculate or find a variable cost when you try to calculate a break-even?
Asked by milion23 - Sat Feb 9 16:00:06 2008 - - 1 Answers - 0 Comments
A. Break even analysis depends on the following variables: The fixed production costs for a product. The variable production costs for a product. The product's unit price. The product's expected unit sales [sometimes called projected sales.] On the surface, break-even analysis is a tool to calculate at which sales volume the variable and fixed costs of producing your product will be recovered. Another way to look at it is that the break-even point is the point at which your product stops costing you money to produce and sell, and starts to generate a profit for your company.
Answered by Tom Z - Sun Feb 10 10:46:58 2008
Q. how do you calculate or find a variable cost when you try to calculate a break-even?
Asked by milion23 - Sat Feb 9 16:00:06 2008 - - 1 Answers - 0 Comments
A. Break even analysis depends on the following variables: The fixed production costs for a product. The variable production costs for a product. The product's unit price. The product's expected unit sales [sometimes called projected sales.] On the surface, break-even analysis is a tool to calculate at which sales volume the variable and fixed costs of producing your product will be recovered. Another way to look at it is that the break-even point is the point at which your product stops costing you money to produce and sell, and starts to generate a profit for your company.
Answered by Tom Z - Sun Feb 10 10:46:58 2008
who knows how to compute variable cost and fixed cost?
Q. usually, on cost analysis, the variable and fixed cost are given. But if you are only given finished product and the price how can i solve the table? i need your help.. thank you!
Asked by dosquatro2409 - Tue Feb 17 07:23:38 2009 - - 1 Answers - 0 Comments
Q. usually, on cost analysis, the variable and fixed cost are given. But if you are only given finished product and the price how can i solve the table? i need your help.. thank you!
Asked by dosquatro2409 - Tue Feb 17 07:23:38 2009 - - 1 Answers - 0 Comments
Business Challenge; Variable Costs and Cost of Sales for a school?
Q. Could you please identify what the cost of sales are for a school because i am trying to do a feasibility study and need to include gross profit = sales - cost of sales! I also need to do a break even but can't decide on the variable costs as these will be so minor per student and i am dealing in such large cash inflows/outflows...Best answer reward!
Asked by Ahmad M - Sun Oct 12 16:36:41 2008 - - 1 Answers - 0 Comments
A. School do not have cost of sales as they don't have inventory per say. They have FC & VC for sure. FC would be the depreciation/ rent of their school building, furnitures & equipments etc. Salary of the staff/ teachers can also be classified as FC as they normally doesn't change. The utility bills might be a mixed cost. If the school is still @ capacity then yes some of the staff cost might be considered as VC. Cheers...
Answered by adiwsusanto - Tue Oct 14 03:23:55 2008
Q. Could you please identify what the cost of sales are for a school because i am trying to do a feasibility study and need to include gross profit = sales - cost of sales! I also need to do a break even but can't decide on the variable costs as these will be so minor per student and i am dealing in such large cash inflows/outflows...Best answer reward!
Asked by Ahmad M - Sun Oct 12 16:36:41 2008 - - 1 Answers - 0 Comments
A. School do not have cost of sales as they don't have inventory per say. They have FC & VC for sure. FC would be the depreciation/ rent of their school building, furnitures & equipments etc. Salary of the staff/ teachers can also be classified as FC as they normally doesn't change. The utility bills might be a mixed cost. If the school is still @ capacity then yes some of the staff cost might be considered as VC. Cheers...
Answered by adiwsusanto - Tue Oct 14 03:23:55 2008
What situation does the marginal (MC) cost equal the average variable cost (AVC)?
Q. What situation does the marginal (MC) cost equal the average variable cost (AVC)? When the AVC is a minimum point in the graph, wht is the reason cuase the MC = AVC? Please...
Asked by i31127 - Fri Apr 25 01:12:30 2008 - - 1 Answers - 0 Comments
A. Marginal Cost equals Average Variable Cost at the minimum of Average Variable Cost curve. The reason is that the marginal cost curve "pulls" the average variable cost curve up or down. It might be simpler to think about this using an example. Let's say you have a 90% average in a class, and then you get a 70% on a test - your average would fall (the marginal grade - the 70% - is below your average, so your average falls) . If you got a 95% your average would rise. Now consider your average grade starts at a 90% and then over a series of tests you got increasingly better grades. Say, you got a 60% on your first test, a 65% on your next test, 70% on the next, and so on until you finally reach 100% on your tests. Think what would… [cont.]
Answered by thenumberq2 - Fri Apr 25 19:22:07 2008
Q. What situation does the marginal (MC) cost equal the average variable cost (AVC)? When the AVC is a minimum point in the graph, wht is the reason cuase the MC = AVC? Please...
Asked by i31127 - Fri Apr 25 01:12:30 2008 - - 1 Answers - 0 Comments
A. Marginal Cost equals Average Variable Cost at the minimum of Average Variable Cost curve. The reason is that the marginal cost curve "pulls" the average variable cost curve up or down. It might be simpler to think about this using an example. Let's say you have a 90% average in a class, and then you get a 70% on a test - your average would fall (the marginal grade - the 70% - is below your average, so your average falls) . If you got a 95% your average would rise. Now consider your average grade starts at a 90% and then over a series of tests you got increasingly better grades. Say, you got a 60% on your first test, a 65% on your next test, 70% on the next, and so on until you finally reach 100% on your tests. Think what would… [cont.]
Answered by thenumberq2 - Fri Apr 25 19:22:07 2008
Accounting: How to calculate variable cost ?
Q. If I am given a break even point of $320,000 and a selling price of $8 per unit and fixed costs of $140,000. Is it possible to calculate the total variable cost from this information? So would you deduct the $320,000 - $140,000 to give you the remaining cost of: $160,000?
Asked by billscott92787 - Wed Jul 23 10:07:23 2008 - - 2 Answers - 0 Comments
A. Break even point is the required level of sales when desired net income equals zero. Your usual equation is the following: Sales = Variable Costs + Fixed Costs + Net Income In your case, net income = 0 and sales = break even point. Thus, you have: Break-even Point = Variable Costs + Fixed Costs + 0 You know the two variables - break even point and fixed costs. You can figure out the variable costs: Variable Costs = Break-even Point - Fixed Costs = $320K - $140K = $180K.
Answered by Igor V - Wed Jul 23 17:34:59 2008
Q. If I am given a break even point of $320,000 and a selling price of $8 per unit and fixed costs of $140,000. Is it possible to calculate the total variable cost from this information? So would you deduct the $320,000 - $140,000 to give you the remaining cost of: $160,000?
Asked by billscott92787 - Wed Jul 23 10:07:23 2008 - - 2 Answers - 0 Comments
A. Break even point is the required level of sales when desired net income equals zero. Your usual equation is the following: Sales = Variable Costs + Fixed Costs + Net Income In your case, net income = 0 and sales = break even point. Thus, you have: Break-even Point = Variable Costs + Fixed Costs + 0 You know the two variables - break even point and fixed costs. You can figure out the variable costs: Variable Costs = Break-even Point - Fixed Costs = $320K - $140K = $180K.
Answered by Igor V - Wed Jul 23 17:34:59 2008
Will average total cost always be greater than average variable cost by a constant amount?
Q. It should, unless fixed cost can increase with quantity. Not sure - please help!
Asked by god - Sun Nov 16 00:48:27 2008 - - 2 Answers - 0 Comments
A. Good question. And yes, average total cost will always be greater than average variable cost. The reason why this is so is because in order to get ATC, you have to add average variable cost and average FIXED cost together. Which should look like this: ATC = AFC + AVC As you can see, AVC is a factor of ATC. There is no way AVC can be greater than ATC, as ATC is a combination of both AFC and AVC. In essence, fixed costs will not increase with quantity. To clear any confusion, when looking at fixed costs and quantity, you should treat both as separate entities or as independent variables. In other words, any change in fixed costs or in quantity will not affect the other variable. So an increase in output produced, will NOT affect fixed… [cont.]
Answered by Vegeta - Sun Nov 16 01:26:25 2008
Q. It should, unless fixed cost can increase with quantity. Not sure - please help!
Asked by god - Sun Nov 16 00:48:27 2008 - - 2 Answers - 0 Comments
A. Good question. And yes, average total cost will always be greater than average variable cost. The reason why this is so is because in order to get ATC, you have to add average variable cost and average FIXED cost together. Which should look like this: ATC = AFC + AVC As you can see, AVC is a factor of ATC. There is no way AVC can be greater than ATC, as ATC is a combination of both AFC and AVC. In essence, fixed costs will not increase with quantity. To clear any confusion, when looking at fixed costs and quantity, you should treat both as separate entities or as independent variables. In other words, any change in fixed costs or in quantity will not affect the other variable. So an increase in output produced, will NOT affect fixed… [cont.]
Answered by Vegeta - Sun Nov 16 01:26:25 2008
Which of the following is most likely to be a variable cost?
Q. Which of the following is most likely to be a variable cost? A.depreciation of factory equipment B.direct materials C.supervisory salaries D.plant lease payments
Asked by Ambiguous - Tue Jul 7 08:12:51 2009 - - 2 Answers - 0 Comments
Q. Which of the following is most likely to be a variable cost? A.depreciation of factory equipment B.direct materials C.supervisory salaries D.plant lease payments
Asked by Ambiguous - Tue Jul 7 08:12:51 2009 - - 2 Answers - 0 Comments
What is the difference between fixed cost and variable cost?
Q. What is the difference between fixed cost and variable cost?
Asked by Herr Murad - Mon May 19 10:20:28 2008 - - 3 Answers - 0 Comments
A. Fixed cost = cost that need to be paid monthly regardless whether the business is doing well or not such as shop rental, labour costs. Variable costs = cost that in accordance with pace of business like if your have higher sales will relate to higher purchasing of materials or lower sales means you don't have to pay much taxes
Answered by alexseah71 - Mon May 19 10:31:02 2008
Q. What is the difference between fixed cost and variable cost?
Asked by Herr Murad - Mon May 19 10:20:28 2008 - - 3 Answers - 0 Comments
A. Fixed cost = cost that need to be paid monthly regardless whether the business is doing well or not such as shop rental, labour costs. Variable costs = cost that in accordance with pace of business like if your have higher sales will relate to higher purchasing of materials or lower sales means you don't have to pay much taxes
Answered by alexseah71 - Mon May 19 10:31:02 2008
are salaries of top management and university professors a fixed cost or a variable cost?
Q. the measure of activity is based on total sales and number of students taught.
Asked by Purple - Fri Jan 18 15:37:55 2008 - - 3 Answers - 0 Comments
A. i'm sure when Al Gore was teaching , he got paid a bundle, variable
Answered by beebee - Fri Jan 18 15:49:51 2008
Q. the measure of activity is based on total sales and number of students taught.
Asked by Purple - Fri Jan 18 15:37:55 2008 - - 3 Answers - 0 Comments
A. i'm sure when Al Gore was teaching , he got paid a bundle, variable
Answered by beebee - Fri Jan 18 15:49:51 2008
How to calculate the variable cost when fixed cost and number of output is given?
Q. How to calculate the variable cost when fixed cost and number of output is given?
Asked by ronii - Mon Nov 17 07:05:24 2008 - - 1 Answers - 0 Comments
A. fixed cost : outpucost = 100% : X (in %) then x-100% == how much % is more or less say price and just turn to money.
Answered by Nikola D - Mon Nov 17 07:16:12 2008
Q. How to calculate the variable cost when fixed cost and number of output is given?
Asked by ronii - Mon Nov 17 07:05:24 2008 - - 1 Answers - 0 Comments
A. fixed cost : outpucost = 100% : X (in %) then x-100% == how much % is more or less say price and just turn to money.
Answered by Nikola D - Mon Nov 17 07:16:12 2008
What is the best way to calculate average variable cost if the total cost and price are given?
Q. What is the best way to calculate average variable cost if the total cost and price are given?
Asked by Presy - Thu Aug 20 01:53:35 2009 - - 1 Answers - 0 Comments
A. Unless you have more than 1 level of activity, so that you can use the high-low method, there's no way to calculate avg VC from TC and Price. Cheers...
Answered by adiwsusanto - Sun Aug 23 07:12:47 2009
Q. What is the best way to calculate average variable cost if the total cost and price are given?
Asked by Presy - Thu Aug 20 01:53:35 2009 - - 1 Answers - 0 Comments
A. Unless you have more than 1 level of activity, so that you can use the high-low method, there's no way to calculate avg VC from TC and Price. Cheers...
Answered by adiwsusanto - Sun Aug 23 07:12:47 2009
A company has a variable cost ratio of 65% and monthly fixed costs of $91,000. What is the company's break ev
Q. Please help, I do not understand how I can give a dollar amount with a percentage. Am a missing a formuila somewhere?
Asked by bretmichaelsishot - Tue Oct 2 21:18:03 2007 - - 2 Answers - 0 Comments
A. In order to break even, the 91,000 fixed cost has to be covered by the 35% of sales left over after covering 65% of each sales dollar that represents variable cost. Therefore, $91,000 divided by .35 = $260,000 Proof: Sales of $260,000 Minus .65 Var Cost - 169,000 Leaves Fixed cost - 91,000 regards,
Answered by realtime1931@att.net - Tue Oct 2 21:32:27 2007
Q. Please help, I do not understand how I can give a dollar amount with a percentage. Am a missing a formuila somewhere?
Asked by bretmichaelsishot - Tue Oct 2 21:18:03 2007 - - 2 Answers - 0 Comments
A. In order to break even, the 91,000 fixed cost has to be covered by the 35% of sales left over after covering 65% of each sales dollar that represents variable cost. Therefore, $91,000 divided by .35 = $260,000 Proof: Sales of $260,000 Minus .65 Var Cost - 169,000 Leaves Fixed cost - 91,000 regards,
Answered by realtime1931@att.net - Tue Oct 2 21:32:27 2007
One machine has a fixed daily cost of $50 and a variable cost of $1.50 per item produced, ?
Q. One machine has a fixed daily cost of $50 and a variable cost of $1.50 per item produced, where as a second machine has a fixed daily cost of $10 and a variable cost of $2 per item produced. Using y to represent the total daily costs will be the same. What is the total daily cost for this number of items? 1stequation:___ 2ndequation:___ x=___cost=___
Asked by Ann Marie - Mon Oct 13 17:47:31 2008 - - 2 Answers - 0 Comments
A. ANSWER: 1st equation: a = 50 + 1.5x ANSWER: 2nd equation: b = 10 + 2x a = b 50 + 1.5x = 10 + 2x 40 = 0.5x 40 / 0.5 = x ANSWER: 8 = x cost = 50 + 1.5x = 50 + 1.5(8) = 50 + 12 = 62 ANSWER: cost = $62
Answered by Lucy - Fri Oct 17 12:27:53 2008
Q. One machine has a fixed daily cost of $50 and a variable cost of $1.50 per item produced, where as a second machine has a fixed daily cost of $10 and a variable cost of $2 per item produced. Using y to represent the total daily costs will be the same. What is the total daily cost for this number of items? 1stequation:___ 2ndequation:___ x=___cost=___
Asked by Ann Marie - Mon Oct 13 17:47:31 2008 - - 2 Answers - 0 Comments
A. ANSWER: 1st equation: a = 50 + 1.5x ANSWER: 2nd equation: b = 10 + 2x a = b 50 + 1.5x = 10 + 2x 40 = 0.5x 40 / 0.5 = x ANSWER: 8 = x cost = 50 + 1.5x = 50 + 1.5(8) = 50 + 12 = 62 ANSWER: cost = $62
Answered by Lucy - Fri Oct 17 12:27:53 2008
In a training company, should i consider instructors who are on my payroll as fixed cost or variable cost?
Q. In a training company, should i consider instructors who are on my payroll as fixed cost or variable cost?
Asked by steven f - Thu Jul 17 08:06:47 2008 - - 1 Answers - 0 Comments
A. A fixed cost should be the same each year regardless of how much the business is making. Variable costs change depending on sales. So rent would be fixed and the cost of inventory would be variable as it changes depending on sales. With regards to your employee I guess it depends on the type of employee the instructors are. If they are permanent employees on a salary then the cost will be the same and could be considered fixed but if they are casual and paid only for the hours worked then variable would be more appropriate. I would make them a variable cost just because over time the cost can vary greatly and is not as set and stable as a fixed cost should be.
Answered by Kate - Sat Jul 19 00:12:51 2008
Q. In a training company, should i consider instructors who are on my payroll as fixed cost or variable cost?
Asked by steven f - Thu Jul 17 08:06:47 2008 - - 1 Answers - 0 Comments
A. A fixed cost should be the same each year regardless of how much the business is making. Variable costs change depending on sales. So rent would be fixed and the cost of inventory would be variable as it changes depending on sales. With regards to your employee I guess it depends on the type of employee the instructors are. If they are permanent employees on a salary then the cost will be the same and could be considered fixed but if they are casual and paid only for the hours worked then variable would be more appropriate. I would make them a variable cost just because over time the cost can vary greatly and is not as set and stable as a fixed cost should be.
Answered by Kate - Sat Jul 19 00:12:51 2008
From Yahoo Answer Search: 'variable cost'
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