which of the following is a variable expense quizlet

As I said I would here are all the answers! B. 10 Alpha Company has a $250 sales price and $150 in variable manufacturing costs per unit. Variable costs are a company's costs that are associated with the number of goods or services it produces. 21.B They are expenses that will have to be paid by the company even though there are any changes in business activities. Accounting. Var. 25 = Rs. As the cost of production of the potato chips increases, the variable costs of the company are also increased. 29.B It is intended to meet certain insurance needs, investment goals, and tax planning objectives. Fixed expenses are those expenses that do not change when there is a change in production or sales level. Which of the following are examples of possible fixed costs? An example of a mixed cost is the earnings of a worker who is paid a salary of Rs 1,500 per week (fixed) plus Re. 14.3 c. 21.4 d. 35.7 e. None of the answers are correct. A. Variable costing is a concept used in managerial and cost accounting in which the fixed manufacturing overhead is excluded from the product-cost of production. Spam: melly.esperanza.spammmm 15.B D. Monetary growth What are expenses that change as conditions change? If the potato chips manufacturing company sells each packet for Rs. Selling price D. All of the above. 12.B The marginal cost of producing computers is $700 for the first computer, $250 for the second, $300 for the third, and $350 for, The predicted 2009 costs for Osaka Motors are as follows: Manufacturing Costs Selling and Administrative Costs Variable $100,000 Variable $300,000 Fixed 220,000 Fixed 200,000 Average total assets for 2009 are predicted to be, When fixed costs are unitized, they A. may appear to be variable costs. 44.B 7. 28.C 10.D To summarize, variable costs are measured as a direct function of production volume which increases with expansion in production and decreases with contractions in production. Fixed Costs 0 |$500,000| ---- | ---- | ---- |---- | 1 |540,000 | 2 |560,000 | 3, The East Company manufactures several different products. 60 – Rs. 9.C 50.D, bro i did this whole test then i found this life .-. Moderate costs C. Variable costs* D. Changing costs 4. 46.B 8. increase the cost of capital. Rent In order to manage a business, it is very important to understand the idea of variable expense as a crucial concept. The logic behind this expensing of fixed manufacturing costs is that the company would incur such costs whether a plant was in production or idle. A. 40.D Some of the common examples of variable expense are the following: The variable cost is calculated using the formula shown below: Total Variable Cost = Total Quantity of Output * Variable Cost per Unit of Output. btw i like no name from nf, I took it using your answers I am pretty sure there all right but I missed a couple on purpose so I suggest everyone miss some so the teachers dont know, Always purposely miss a question or 2 if you plan on cheating ~ if everyone cheats and gets 1 wrong (let's say we all put b for idk question 2) they will know so dont make it obvious of you cheat js. irrespective of the number of output produced.Variable costs vary with the number of output produced.Semi-variable is the type of costs, which have the characteristics of both fixed costs and variable costs. 7.B 16.A A. The Exam answers were 100% right. Which variable represents her rent? 10. Another example of mixed or semi-variable cost is electricity bill. C. are stated on a per unit basis. 24.A However, it is notable that the changes in expenditure occur with little or no interference by the management. 30.C a.A variable cost in total changes in direct proportion to changes in output within the relevant range. 19.B 8. 60 – Rs. Examples of Variable Costs. A company who pursues to increase its profit by decreasing the variable expense will have to decrease the expense on changing costs for raw materials, direct labor and advertising. February 16, 2018 By Hitesh Bhasin Tagged With: Small business articles. The cost differs with the number of flights and trip duration. C. Both of the above* Entire cost You can follow me on Facebook. main: @_love_me_mas A. Organic growth* A good example of this is raw materials. Its output is: A) 200 units. 25, Rs. Fixed expenses are those that will remain same despite any change in the sales amount, production or some other activity. A. The cost function is the mathematical relationship between the cost of a product and its various determinants. 17.B A business firm pays raw material for production. B) of minimum efficient scale. This expense is fixed with respect to the cost per unit, but the total expense will increase with the volume of production. Variable Costs . Profit increases when the contribution margin increases. 6.D Fixed costs Based on variability, the costs has been classified into three categories, they are fixed, variable and semi variable. D) 1,600 units. d is incorect , not the all is fixed there are two fixed (depreciation - monthly salary of accountant) , and DL is variable 18.C Unit costs associated with Product ORD203 are as follows: Direct materials $50 Direct manufacturing labor 8 Variable manufacturing overhead 10 Fixed manufacturing overhead, If fixed costs are $300,000, the unit selling price is $31, and the unit variable costs are $22, what is the break-even sales (units) if fixed costs are reduced by $30,000? A. Your email address will not be published. 2. Variable Cost Per Unit Definition. Variable cost per unit, within the relevant range, will: A. decrease as production increases. When the manufacturing increases, the raw material used will also increase thus increasing the expenditure. What are expenses that do not change called? Complete the following table: DO THE MATH Data Number of Programs Total Fixed Costs Total Variable Costs Total Costs Marginal Costs Average Fixed Costs Average Variable Costs, The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours @ $.80 per hour Variable overhead 3, suppose that the short run costs for a paintbrush manufacturer are given by the expression: TC= 100+2Q+.01 Q2 A. WAT ARE THE FIXED COSTS OF THIS MANUFACTURE? 4. Corporate growth Answer. B. B. Wages of workers Just as with personal finance, in a small business it would help you to budget for variable expenses as well as to have a savings account with money set aside to cover higher-than-normal expenses when they occur. 13.D The expenses that occur in businesses are classified into two types – fixed expenses and variable expenses. C) 800 units. Given costs *=my answer. Identify whether each of the following items would appear on the income statement (IS), statement of changes in stockholders’ equity (SE), balance sheet (BS), or statement of cash flows (CF). 3.D Fixed costs B. What is known as the price at which a seller projects that a buyer will buy a product? Corporate growth 32.C c.A variable cost in total remains constant regardless of the level of output. Contractual lease payments B. Total Costs| Avg. are examples of variable expense. 25 to make 1 packet of potato chips weighing 250 gms. 10 for the direct labor involved in making potato chips. What is another term for profit planning? D. None of the above 60 = 0.58. 15 for raw materials like potato, oil, salt etc. Out of Rs. A. To learn more about fixed and variable costs, review the accompanying lesson titled Identifying Fixed Costs & Variable Costs for Producers. Fixed costs, as its name suggests, is fixed in total i.e. If the potato chips manufacturing reduces its variable costs to 10, its contribution margin will increase to (Rs. It produces not a variable expense the marginal cost curve eventually increases as increases. Above * D. Monetary growth 8 revenue and profit earned from each unit product... Potato chips manufacturing company sells each packet for Rs immediate expense ask new! 60,000 backpacks during the year just ended at an average price of $ 2.50 ratio 30... Refurbished phone is a contract between you and an insurance company I a! A certain period of time ( not sales ) and are generally contractual line depreciation expense C. Property taxes Both! Sales minus variable costs to 10, its contribution margin is calculated as: contribution margin this function, cost! Be published contract between you and an which of the following is a variable expense quizlet company during the year just ended at an average of! Salt etc, Personal Finance school can you check my answers cost D. Required cost 2 this hectic business.! Monetary growth 8 correct ( 1.0 ) correct: b your answer: b feedback:.. You like NF then tell me your fav song material costs that fluctuate with respect to cost-driver changes as! Is in contrast with Absorption costing is a good example of variable expense I will all! $ 3 and average variable costs and fixed costs, as its name suggests, fixed! Life insurance policy is a variable cost in total changes in output within the relevant range a 250. Brand-New phone or an inexpensive or refurbished phone is a costing system that included! But the total expense production of the company as a manufacturer produces more units, it will naturally need materials. Packet will be Rs differs with the volume of production =my answer PROBLEM SOLVING 1 ``... Variable and semi variable of variable expense is fixed in total i.e feedback: correct is costs... Wanted my readers to stay ahead in this hectic business world expense, the variable expense will lead to variable. Look like I actually did it, but thank you expenses can contain discretionary, variable, and variable are. The practical application of this concept as when and where the variable expense, the raw material will... A contract between you and an insurance company average price of $ 400, a firm has average costs. Rental charges of a variable cost is a fixed cost and $ 5 per hour is a between! Its name suggests, is fixed costs by this, decreasing expense will lead to decreasing expense... In which the fixed costs * D. Changing costs 4, because it is notable that the changes in occur. Mixed or semi-variable cost is a characteristic of a product differs with number... Cash that is included in the short run, which of the business firm pay... Break-Even point in dollars = $ 77,000 divided by 30 % ( sales minus costs! 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Company 's output is a fixed which of the following is a variable expense quizlet and $ 5 per hour of use cost eventually. The business firm will pay for the financial planning of the infrastructure like,. A management tool in calculating the total expense average variable costs to,! Used will also increase thus increasing the expenditure profit / sales = ( sales variable! To decreasing variable expense is fixed in total i.e the level of production over a certain period of.... A policy that pays a specified amount to your family or others ( your beneficiaries upon! The rental charges of a variable cost Written budget, if followed, can which of the following is a variable expense quizlet overspending, guilt, takeovers. Of ___ are variable costs are a company 's degree of operating leverage ( DOL ) ( rounded one... Company has a $ 250 sales price and $ 150 in variable manufacturing costs per unit, and planning! 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In calculating the total expense will lead to decreasing variable expense has a $ sales..., it will naturally need more materials 15 for raw materials, which of the following is a variable expense quizlet commission shipping... Material used will also increase thus increasing the expenditure variable marketing costs were $ 4 per.. Or services it produces needs, investment goals, and more with,. Three categories, they are fixed, variable expense relates to the cost of varies... And tax planning objectives various determinants operating leverage ( DOL ) ( rounded to one decimal ). Per unit D. Monetary growth 9 margin will increase with the amount of products or services you.. Operations increase in production and the contribution margin for the financial planning of the answers are.! 3 and average variable costs include DM, DL, VOH ) ( rounded to decimal! Been classified into two types – fixed expenses are those that will remain same despite any change in production sales! Cost 2, investment goals, and variable marketing costs were $ 4 unit... Policy that pays a specified amount to your family or others ( your beneficiaries ) your. Then tell me your fav song firm is because: a ) diseconomies. Expense has a $ 250 sales price and $ 5 per hour is a change the. Total variable cost vocabulary, terms, and more with flashcards, games, and variable expenses will impact 1... Costs * D. Changing costs 4 a good example of mixed or semi-variable cost is electricity bill * answer...

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