Costing

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02 July 2010 How to detemine the Fixed and Variable costs

02 July 2010
Fixed cost constant to amount , it will not change based on production or output

Varriable cost constant to the perunit it will increase when the out put increase and decrease when the output decrease

02 July 2010 Variable costs are expenses that change in proportion to the activity of a business.[1] In other words, variable cost is the sum of marginal costs. It can also be considered normal costs.


Fixed cost that does not vary depending on production or sales levels, such as rent, property tax, insurance, or interest expense.

02 July 2010 Variable costs are expenses that change in proportion to the activity of a business.[1] In other words, variable cost is the sum of marginal costs. It can also be considered normal costs.


Fixed cost that does not vary depending on production or sales levels, such as rent, property tax, insurance, or interest expense.


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