Review for managerial accounting - Article Example

Biolea believes in self-reliance and innovation. Biolea’s operations are based on solid scientific methods of agriculture of Olive groves in Crete and provide an untainted quality of olive oil to its customers. Biolea’s range of products includes olive oil, and its varieties like Lemonio, Nerantzio. Biolea also supports agro-tourism, wild life, and renewable energy. Fixed Cost, Variable Cost and Mixed Cost – Examples and Their Significance For running its business operations, Biolea incurs fixed cost, variable cost as well as mixed cost.

Fixed cost of Biolea would include cost of salaries of supervisors, depreciation of factory machines, etc. Variable costs of Biolea would include cost of olive groves, cost of shipping the olives. Mixed cost includes cost of supervisory salaries for varying levels of production, cost of natural gas for varying levels of production of olive oil. . Bottled from the beginning, the natural mineral water sold by Evian reduces any chance of impurity and ensures that the customer enjoys purity as well as taste.

Water plays a key role for pregnant women and hence this segment of mothers forms a large base of Evian’s customers. Evian’s water plays a key role in baby’s development as the fetus at 25 weeks is 90% water it. Evian’s dwindling water supply is due to increase in population and the striving of people especially in the developing countries to drink clean water today and tomorrow. To ensure that customers get pure and clean drinking water throughout 24 hours, Evian has designed a PET bottle that is easy to carry.

Evian provides customized bottle of natural water for specific purposes of sports, travel and tour, etc. Fixed Cost, Variable Cost and Mixed Cost – Examples and Their Significance For running its business operations, Evian incurs fixed cost, variable cost as well as mixed cost. Fixed cost of Evian would include cost of salaries of supervisors, depreciation of factory machines, etc. Variable costs of Evian would include cost of natural water bottles, cost of shipping the bottles. Mixed cost includes cost of supervisory salaries for varying levels of production, cost of raw material for varying levels of production of bottle mineral water.

The three types of cost listed above for Evian are a typical example for the reason that items listed under fixed cost are fixed expenses to be incurred by Evian irrespective of the level of production of bottled mineral water, items under variable cost would vary as the production level of Evian would vary, items listed under mixed cost of Evian have a fixed component irrespective of Evian’s