Variable cost refers to the costs that change with changes in the quantity of output produced. These are affected directly by the fluctuations in the activity levels of the enterprise. Variable costs and volume of the production are directly proportional. Hence, with an increase in production, the...
The variable cost is defined as that component of the total cost, which increases as the firm increases its production. The fixed cost, on the other...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask...
Fixed vs variable cost refers to categorizing business expenses as either static or fluctuating during changes in production output and sales volume. Fixed costs remain the same irrespective of changes in production output, no matter what’s happening in the business. Variable expenses increase or dec...
Answer to: Explain the difference between fixed cost, sunk cost, and variable cost. Give examples that illustrate their difference. By signing up,...
One of the best ways to manage a fixed expense is to schedule an automatic payment to process on a recurring basis. When the size and timing of the payment is predictable, paying it manually every month takes up focus you could be using elsewhere in your budget. What are variable expenses...
For example, your cell phone bill is a fixed expense, but if you switch to a new cell phone service, the fixed cost will change. Fixed expenses are paid at regular intervals and may vary slightly, change significantly or stay the same, depending on the type of expense. Monthly fixed ...
Building a budget is a fundamental way to save smarter. But to do that, you need a basic understanding of fixed and variable expenses—and how they can impact your ability to stick to a budget. What is a fixed expense? Fixed expenses stay the same every month. They’re predictable and ...
A. the variable cost of production minus the total cost of production is the fixed cost ofproduction. B. the total cost of production minus the variable cost of production is the fixed cost ofproduction. C. the total cost of production minus the variable cost of production is the marginal ...
Some operational costs are static, while others fluctuate. It’s important to know the difference between fixed and variable costs. Read more in our guide!
While variable costs tend to remain flat, the impact of fixed costs on a company's bottom line can change based on the number of products it produces. So, when production increases, the fixed costs drop. The price of a greater amount of goods can be spread over the same amount of ...