Variable cost??!!

Cost Accounts 626 views 3 replies

HELLO GUYS THE QUESTION IS 

ONE MORE VARIABLE COST THAT WILL DECREASE WHEN PRODUCTION INCREASE WHAT IS THAT???!!!AND PLS EXPLAIN WHY??

Replies (3)

Where have u come accross this statement?

 

my best sir ever asked this question pls dont misunderstand there is something special in this ques.my sir completed ca,cma and acs(inter) and 3 MBA and so on...try ur level best mam!!!yes

Dear Aravind,

U said "ONE MORE VARIABLE COST THAT WILL DECREASE ....."

Not mentioned which is/are other/s than one more.

Still, If ur querry is for Total Variable Cost Decrease & not Per Unit, then there are many variable costs which has direct relation to production which tend to get reduced as increase in Production.

If Raw Material is bought in bulk based on anticipated increase in Production, Bulk buying discount is available which reduces raw material cost.

In Similar way many variable costs in Total gets reduced due to increase in Production.

 

 

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register