Nobody downloaded yet

Fixed and Variable Costs - Essay Example

Comments (0) Cite this document
1. Fixed cost is that cost that does not change significantly with the change in the level of activity. Examples of fixed cost include interest expense, salaries and expenses of the employees or executives, property taxes and insurance protection.
Variable cost is that cost that cost which changes with the change in the level of activity…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.1% of users find it useful
Fixed and Variable Costs
Read TextPreview

Extract of sample
"Fixed and Variable Costs"

Download file to see previous pages Examples of semi variable costs include electricity expense, telephone expense. In one broad category of Over head expenses, these costs are collectively shown for example depreciation of machinery as well as the heating and lighting cost. Electricity cost is a semi-variable cost because there is a fixed charge and then on any unit we use we are charged an additional amount. So this additional amount is the variable cost and the fixed charge is the fixed cost. Semi variable cost stays constant for a certain time period and then it goes to a higher cost at a specific increased volume (Leslie 1993).
For analysis purpose, the fixed part is separated from the variable part and both are written separately so that proper analysis can be done and so the company should know as to how much is their fixed cost and how much is variable.
2. A company's break-even point is its sales volume at which its total costs equal its total revenues. This means that at the break-even point, the company is making neither any profit nor any loss. If a company is operating below its break-even point it would not be able to exist in the long run as its costs (fixed and variable) would not be covered by the revenues (Susan 2008) . ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Fixed and Variable Costs Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Retrieved from
(Fixed and Variable Costs Essay Example | Topics and Well Written Essays - 500 Words)
“Fixed and Variable Costs Essay Example | Topics and Well Written Essays - 500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Principles of Accounting SLP 3: Allocation of Fixed Costs
Principles of Accounting SLP 3: Allocation of Fixed Costs Introduction The allocation and distribution of fixed and variable costs over the various elements of an organization’s balance sheet are what cost accounting is most concerned about, it would seem.
3 Pages(750 words)Essay
Fixed Cost, Variable Costs, and BreakEven Point (Financial Management)
2 Pages(500 words)Essay
Management Accouting
2 Pages(500 words)Essay
Full costing versus variable costing: Does the choice still matter
Also implications of these approaches in the real world along with the use of variable and full costing approach in product and service organisations has also been discussed. In the end, the report provides
8 Pages(2000 words)Essay
Variable and Fixed Costs
In year 2011, Herrested Company earned contribution margin of $60 per unit or $480,000 in total with the net income of $180,000. If the selling price per unit is increased to $280, it will result in the
2 Pages(500 words)Essay
Variable and Fixed Costs
On the other hand, variable income statement organizes costs incurred by business by their behavior. Additionally, it indicates the
2 Pages(500 words)Essay
CASE 3- Variable and Fixed Costs
Further the concept of breakeven points is explained, the method to come to the breakeven point is also explained and the purpose of calculating breakeven point is discussed in the following paper. Absorption costing
3 Pages(750 words)Essay
Analyze the companys cost structure (e.g., variable vs. fixed costs, manufacturing vs. non-manufacturing costs, direct vs. indirect costs, job costing or process costing, etc) for starbucks
Fixed costs on the other hand, are expenses the company incurs whether they make coffee or not. For example if they don’t sell a cup of coffee, they
2 Pages(500 words)Essay
Absorption Costing versus Variable Costing
The absorption costing technique is more favourable as the profits estimated under this system are more accurate. Variable costing is seen to inflate expenses and reduce the level of profits. Both the methods
6 Pages(1500 words)Essay
include costs that directly accrue with mileage include oil and gas while those whose chances increase with mileage include accident repair cost, and repair when there is failure of components. Fixed costs include procurement, inventory control, and general management o the
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Fixed and Variable Costs for FREE!
logo footer
Contact us:
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us