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. 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