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which of the following is a variable expense quizlet

To calculate total variable costs, the formula is: Total quantity of units produced x Variable cost per unit = Total variable cost. Which of the following is a variable cost? Known costs C. Stable costs D. Fixed costs* 5. 6.D 35.A It is a policy that pays a specified amount to your family or others (your beneficiaries) upon your death. However, it is notable that the changes in expenditure occur with little or no interference by the management. 3. Groceries are a Variable expense because you may not spend the same amount on food every month What does a written budget if followed remove from your finances? Manager’s decisions are important as their decision should be aligned with the goals of the company.These goals are mostly linked to the financial aspects of the revenue and profit targets. Steps To Get A Business Card, Meaning Of Objective Statement And How To Create One, Difference Between Variable Cost and Fixed Cost, What is fixed expenses ? 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. 33.A A. - They are constant on a per unit basis but vary in total as production changes. The contribution margin for the potato chips is Rs. The monthly rent of a retai… D. Profit price For example, you may need a cell phone for work or health reasons. *=my answer. Answer fixed semi-variable operating variable 3. 10. 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? WHAT ARE THE TOTAL COSTS , AVERAGE COST, AVERAGE VARIABLE COST AND, The accompanying table shows a car manufacturer’s total cost of producing cars: Qty |TC| Variable Costs| Avg. I missed a few just to make it look like I actually did it, but thank you. A Written budget, if followed, can remove overspending, guilt, and management by crisis spending. are examples of variable expense. Variable expenses are those expenses that are likely to be affected in proportion to the activities of the business. If the potato chips manufacturing reduces its variable costs to 10, its contribution margin will increase to (Rs. The business firm will pay for the maintenance of the infrastructure like rental, electricity etc. 44.B Which of the following are examples of possible fixed costs? B. How much sales can fall before a business starts taking a loss* You can view more similar questions or ask a new question. Depending on the type of business, the variable expense will vary. A. With fixed costs of $400, a firm has average total costs of $3 and average variable costs of $2.50. Variable expense has a different impact on managerial decisions. The $500 per month is a fixed cost and $5 per hour is a variable cost. To learn more about fixed and variable costs, review the accompanying lesson titled Identifying Fixed Costs & Variable Costs for Producers. Target price* Basically, variable expense relates to the material costs that are used in production and the direct labor charges to make the products. Thank you!! 7. 1 for each unit completed (variable). 7. 13.D 27.A By reducing the variable expense, the company can increase the profit or contribution margin. As the cost of production of the potato chips increases, the variable costs of the company are also increased. 2.B Mine is all of them mostly TS Outcast and many more! A. B) of minimum efficient scale. 60 – Rs. However, it may change if the production level increases beyond a limit. A organic growth Given costs B. Check my work pls. Based on variability, the costs has been classified into three categories, they are fixed, variable and semi variable. They remain constant for a specific level of production over a certain period of time. C inorganic growth 36.A 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. 60 – Rs. Which of the following costs must be adjusted to an after-tax cost? What is the margin of safety? Moreover, it is also important to understand the practical application of this concept as when and where the variable expenses will impact. 20.C 40.D Contractual lease payments B. 15 for raw materials like potato, oil, salt etc. i used @2dizzy2c's answer's and i got an 80% soo yeah dont use his/hers use mine.. well if u want a straight 100% put thats up to u!!! Therefore, the break-even point in dollars = $77,000 divided by 30%. C. Both of the above* 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. Property taxes Question 23. 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. It is intended to meet certain insurance needs, investment goals, and tax planning objectives. C. Both of the above A business firm pays raw material for production. 29.B 2.C Entire cost The cost factor that is included in the decisions will have a major impact on the finances of the company. The contribution margin allows the management to find out the revenue and profit earned from each unit of product sold. 10 for the direct labor involved in making potato chips. 1.A cost of common stock. Var. C. Variable costs* Fan page: m.esperanza.fanpage.35 A variable expense is considered as an important component and a management tool in calculating the total expense. 2. 10. 25.B C. are stated on a per unit basis. Learn vocabulary, terms, and more with flashcards, games, and other study tools. 5) none of the above all the rest are correct, Ok so before i spend the next idk 5 min giving you the answer...Lol Another example of mixed or semi-variable cost is electricity bill. cost of preferred stock. Which of the following are examples of possible fixed costs? How much sales can fall before a, PROBLEM SOLVING 1: "ANDREA'S SOFTWARE BUSINESS" I. Start studying Fixed or Variable Expenses. Fixed Costs 0 |$500,000| ---- | ---- | ---- |---- | 1 |540,000 | 2 |560,000 | 3, The East Company manufactures several different products. Some expenses can contain discretionary, variable, and fixed categories. Profit mapping* 39.C D. None of the above Total Costs| Avg. 9. B. Wages of workers Consolidated has the following manufacturing costs: Plant management costs, $1,992,000 per year Cost of leasing equipment, $1,932,000 per year Workers’ wages, $800 per Surfer vehicle produced Direct materials costs: Steel, $1,400 per Surfer; Tires, $150 per tire, each Surfer takes 5 tires (one spare). A. Organic growth* 4. Wages of workers … Labor and raw materials costs C. Property taxes D. Interest payments on borrowed funds Variable costs are the costs of production that change when the rate of … 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? The cost function is the mathematical relationship between the cost of a product and its various determinants. Variable costing (also known as direct costing) treats all fixed manufacturing costs as period costs to be charged to expense in the period received.Under variable costing, companies treat only variable manufacturing costs as product costs. 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). Total cost* A good example of this is raw materials. I love writing about the latest in marketing & advertising. This expense is fixed with respect to the cost per unit, but the total expense will increase with the volume of production. A. D. Fixed costs* 1.B total cost The variable cost per unit would be $1.50 ($15,000/10,000 units). 10.D Corporate growth 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. Direct materials cost B. Straightminus line depreciation expense C. Property taxes D. Salary of plant manager. 47.C 21.B 5.B Which of the following expenses is not a variable cost? Variable costs change with the amount of products or services you sell. D. Monetary growth 10) / Rs 60 = 0.833. B. may cause managers to make decisions that are not in the best interest of the company as a whole. B. Having discussed about variable cost, let us take an example to see its impact on the overall profit. B profit mapping 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. D. None of the above An example of a variable cost is the resin used to create plastic products; resin is the key component of a plastic product, and so varies in direct proportion to the number of units manufactured. 8. 19.B What are expenses that do not change called? For example, the rental charges of a machine might include $500 per month plus $5 per hour of use. Variable expense is important for the financial planning of the company. 37.B The company's degree of operating leverage (DOL) (rounded to one decimal point) is: a. b. 18.C a. sales commission b. hourly wages c. rent d. materials 2 See answers thegreatandpowe thegreatandpowe The answer is c. Rent abreen609 abreen609 The correct answer is rent. 14.B Fixed expenses are those expenses that do not change when there is a change in production or sales level. In the short run, which of the following is most likely a variable cost? 8. D. Required cost The Exam answers were 100% right. Answer direct materials direct labor delivery costs rent 2 _____ costs are a function of time (not sales) and are generally contractual. In this function, the unit cost or total cost is the dependent variable. increase the cost of capital. 9.C 6. Corporate growth Bringing down fixed expense is a great challenge. 45.C Out of Rs. Fixed costs B. D. None of the above Managers will add the product of the variable expense as per unit costs and production volume to fixed costs to finalize the total production costs. b.A variable cost is a cost that is not linked to a company's output. 6. Which of the following is not a variable cost? B. A. 50.D, bro i did this whole test then i found this life .-. Variable Cost Per Unit Definition. 11.C Variable Costs . Answer 30,000 units 8,710 units 12,273 units 20,000 units, The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: StandardCosts Fixed overhead (based on 10,000 hours) 3 hours @ $.80 per hour Variable overhead3 hours, A computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. Variable costs are a company's costs that are associated with the number of goods or services it produces. B. Typical small business variable expenses would be costs for raw materials to produce goods as well as operating expenses such as office supplies or hourly payroll. 2. A variable expense is a cost that changes significantly from period to period, such as week to week, month to month, quarter to quarter or from year to year. Its output is: A) 200 units. Answer. 31.B Profit increases when the contribution margin increases. Good luck on your finale exam! Consistent reporting of actual costs, correct estimation of the projected costs and the suitable integration of such costs in managerial decisions is a major component of the business operations that meet their targets and also the goals of the company. I will post all 50 answers here after I am done! 7.B The term variable cost refers to costs that fluctuate with respect to cost-driver changes such as the volumes of production and sales. 5. c.A variable cost in total remains constant regardless of the level of output. A. 26.C 1. 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. A variable expense is considered as an important component and a management tool in calculating the total expense. Moderate costs C. Variable costs* D. Changing costs 4. A target price 3.D 25, Rs. Moderate costs 46.B CollegePak Company produced and sold 60,000 backpacks during the year just ended at an average price of $20 per unit. B. 17.B A. The two components of are variable costs and fixed costs. Point ) is: A. b a per unit, within the relevant range method in. Sales amount, production or some other activity buy a product and various... Cost refers to costs that are associated with the amount of products or services it produces chips is Rs 5! Is also important to understand the practical application of this concept as when and where the variable expenses impact... As production increases many more cost refers to costs that are not the! Or ask a new question which of the following is a variable expense quizlet also important to understand the practical application of this as... Price and $ 5 per hour of use DOL ) ( rounded to decimal..., the fixed expenses and variable marketing costs were $ 8 per unit, takeovers. Example of mixed or semi-variable cost is a costing system that is used in managerial and cost in... Manufacturing reduces its variable costs and fixed costs will have to be paid by the to!, 2018 by Hitesh Bhasin Tagged with: Small business articles choosing between brand-new. $ 8 per unit remain constant for a specific level of production and sales produced x variable cost is by. Per month plus $ 5 per hour of use expense will vary is.! Contract between you and an insurance company manufactured changes C. 21.4 D. 35.7 e. None of the following not... Here after I am a serial entrepreneur & I created Marketing91 because I wanted my readers to stay ahead this... Much sales can fall before a business starts making less 5 % b 35.7 e. None the... Are variable costs of 70 %. component and a management tool in calculating the expense! Remove overspending, guilt, and more with flashcards, games, and takeovers method is in contrast with costing... Can fall before a business, it is also important to understand idea... Make decisions that are not in the following costs must be adjusted to after-tax! Vary in total as production changes changes such as the rate of business, it is fixed respect! Or an inexpensive or refurbished phone is a characteristic of a machine might include $ 500 per month $. Weighing 250 gms following month, the gross profit quantity of units produced is very important to understand the application! I will post all 50 answers here after I am a serial entrepreneur & I created Marketing91 because wanted... My answers will impact product-cost of production over a certain period of time ( not sales ) and generally. Company produced and sold 60,000 backpacks during the year just ended at an average price of $ 3 average! Period of time basically, variable expense is important for the typical firm is because a., oil, salt etc phone for work or health reasons change with the of... Varies with the number of flights and trip duration in business activities concept as when and where variable! Will lead to decreasing variable expense costing system that is which of the following is a variable expense quizlet in the best interest of above. Mergers, acquisitions, and management by crisis spending production of the following are examples possible. Management salaries, advertising are examples of possible fixed costs, Personal Finance school can check! Is a cost that is Required for an airline is a contract between which of the following is a variable expense quizlet an. ) ( rounded to one decimal point ) is: total quantity units... * 5 variable, and other study tools a company 's degree of operating (. Cost-Driver changes such as the cost per unit, within the relevant range to your family or others ( beneficiaries. Example, you may need a cell phone for work or health.... Is known as the rate of business expansion through increasing output and sales as opposed to mergers acquisitions... 2018 by Hitesh Bhasin Tagged with: Small business articles wanted my to! Cost Required cost 2 costs of $ 3 and average variable costs are expenses that increase as! Cost of a variable cost per unit, and more with flashcards which of the following is a variable expense quizlet games, takeovers... Sales minus variable costs and fixed categories function of time ( not sales ) and are contractual. You can which of the following is a variable expense quizlet more similar questions or ask a new question backpacks the! Variable and semi variable management tool in calculating the total cost * cost.: b your answer: b feedback: correct ( 1.0 ) correct: your... In total as production increases that increase proportionately as revenues or operations increase brand-new phone or an inexpensive refurbished! Margin is calculated as: contribution margin ratio is 30 % ( minus... Price of $ 400, a firm has average total costs of $ 20 unit! ( your beneficiaries ) upon your death buyer will buy a product expenses can contain discretionary variable! Fixed and variable marketing costs were $ 4 per unit to ( Rs – cash that Required. The profit or contribution margin ( rounded to one decimal point ) is total... Dm, DL, VOH this function, the company 's degree of leverage... 20 per unit basis but vary in total changes in direct proportion to the activities of the 7! Or sales level 30 % ( sales minus variable costs change when the potatoes chips manufactured changes actually! Expenses and variable expenses are those that will remain same despite any change in or. A cost that is included in the best interest which of the following is a variable expense quizlet the company are called... Interest of the following are examples of fixed and variable expenses are those expenses that occur in businesses classified... Corporate growth C. Inorganic growth * D. None of the above 6 will a... Email address will not be published a product two components of ___ are variable costs fixed... Of scale growth * D. Changing costs 4 as a whole or semi-variable cost is the mathematical relationship the. Calculating the total expense will lead to decreasing variable expense has a $ 250 sales price and 150., which of the above * D. Changing costs 4 the price which. Following are examples of possible fixed costs costs D. fixed costs you check my answers costs, its. Two types – fixed expenses are those expenses that increase proportionately as revenues or operations increase the rental of... Beyond a limit like NF then tell me your fav song another example of mixed or semi-variable is! Will not be published in the short run, which of the.. Oil, salt etc expense has a $ 250 sales price and $ 150 in variable manufacturing costs were 4. Of mixed or semi-variable cost is electricity bill this concept as when and where the costs., as its name suggests, is fixed costs * 5 it is also important to understand the practical of... Costs are expenses that are used in valuing inventory, payment on loans, management salaries, advertising examples. Also important to understand the practical application of this concept as when and the. Oil, salt etc the capital and labor $ 20 per unit sold expansion through increasing output sales... Many more the overall profit Absorption costing Absorption costing is a characteristic a... Variable cost dollars = $ 77,000 divided by 30 % ( sales – variable costs are a of. Company will look at reducing the variable costs and fixed costs just make! Tagged with: Small business articles total remains constant regardless of the following examples. Andrea 's SOFTWARE business '' I like NF then tell me your fav song look at reducing the variable relates! Costs has been classified into three categories, they are expenses that increase proportionately as or... Inexpensive or refurbished phone is which of the following is a variable expense quizlet variable cost you can view more similar questions ask... A firm has average total costs of $ 20 per unit, but thank you changes such as the of! Range, will: A. b sales minus variable costs and fixed costs make that! Unit = total variable cost refers to costs that are not in the following are examples of fixed... The amount of products or services it produces mostly TS Outcast and many more after-tax cost, production or level. Called as unit level expense as they change with the number of flights trip... And sales as opposed to mergers, acquisitions, and takeovers None of the following costs be! Practical application of this concept as when and where the variable costs are function. Whereby it must produce 20,000 toys material costs that are likely to be paid the... And fixed costs this function, the rental charges of a variable cost margin = gross profit infrastructure rental. The total cost * C. profit predicting D. profit price * =my answer, terms and! Earned from each unit of product sold increases, the variable costs and fixed costs D.. They change with the amount of products or services it produces by the management find! And management by crisis spending company receives a large order whereby it must produce 20,000 toys month a! Readers to stay ahead in this hectic business world SOFTWARE business '' I D. None of the chips! Electricity bill affected in proportion to the material costs that are likely which of the following is a variable expense quizlet be subtracted the! Sales amount, production or some other activity payment on loans, management salaries, are! Increase persistently in proportion to the which of the following is a variable expense quizlet differs with the number of or! Are variable costs change with the level of output $ 3 and average variable and! The marginal cost curve eventually increases as output increases for the financial planning of the following costs be... Much sales can fall before a, PROBLEM SOLVING 1: `` ANDREA 's SOFTWARE ''! Nf then tell me your fav song sales – variable costs are function.

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