Essays Tagged: "Variable cost"
Variable costing vs Absorption costing.
fixed manufacturing overheads are allocated to products. The alternative system which assigns only variable manufacturing costs to products then fixed costs added separately is termed marginal costin ... s available for periods 1-6 for a company that produced a single product($)Unit selling price10Unit variable cost 6Fixed costs for each period 300Normal activity = 150 units per period, production &am ...
Subjects: Businesss Research Papers > Accounting
Biopure HBS case write up
mine that the cost of production is $15 Million per year independent of volume, plus $1.50 per unit variable cost. The current capacity for Oxyglobin is 300,000 units. In exhibits 4 and 5 we determine ...
Subjects: Businesss Research Papers > Marketing
ACCOUNTING FOR DECISION MAKING: TYPE OF COST INVOLVED IN TAMIN'S FRIED CHICKEN COMPANY
are the costs that are involved in Tamin's business operations?2. What is Fixed Expenses?3. What is Variable Expenses?4. What is Semi-variable cost?5. What is Break-even volume?6. Why is it important ... ction process. Those cost might involve in an organization entity are opportunity cost, fixed cost, variable cost and others. Cost are influence by the amount of output that an organization can produc ...
Subjects: Businesss Research Papers > Accounting
Accounting Revision Notes for test
A cost object is an item which is assigned a separate measure of cost.A variable cost is a cost that changes whilst a fixed cost doesn't change.A direct cost is a cost that ...
Subjects: Businesss Research Papers > Accounting
Planning and Budgeting
00. Using this data, I found the following information.1. Contribution margin is sales revenue less variable costs. It is the amount available to pay for fixed costs and provide any profit after varia ... have been paid. (Wikipedia, 2006) Find the contribution margin per haircut:Unit sales price - unit variable cost = contribution margin12.00 Per cut - 0.40/shampoo = contribution margin$11.60 = contri ...
Subjects: Businesss Research Papers > Accounting
Management Accounting: Fixed and Variable Costs
I.Assignment InstructionsCosts can be classified into two categories, fixed and variable costs. These costs behave differently based on the level of sales volumes. Suppose we are r ... nual Cost: 650Item: Building RentTotal Annual Cost: 9000Identify which cost item above is fixed and variable and why? What is the cost per unit of each? Suppose we increased our sales volume to 6000 u ... re still within the relevant range), what would be the total annual cost and unit cost of fixed and variable costs? (American InterContinental University, 2007)II.Assignment Detail1.Identify which cos ...
Subjects: Businesss Research Papers > Accounting
Planning and Budgeting
such as rent, these have to be paid even if there is no production. The second type of cost is the variable cost; this is the costs that will variable dependant in the production, the direct inputs i ... tion level per haircut. This means taking the revenue that is gained and then deducting the direct (variable) costs. This is shown in figure 1 below.Figure 1. Contribution Margin.Revenue per hair cut ...
Subjects: Businesss Research Papers > Accounting
Cost Descriptors Paper
s an amount paid or required in payment for a purchase. Cost can be classified in many ways: fixed, variable, direct, indirect and sunk just to name a few. Fixed costs were mostly associated with admi ... associated with administrative cost. Fixed costs include items like rent, utilities and insurance. Variable cost are cost that vary directly with the number of products produced (Ward, 2006). Direct ...
Subjects: Businesss Research Papers > Accounting
What is Management accounting?
The raw material used to make the hamburgers is an item of variable cost because the more hamburgers that are produced, the more raw materials you will have to ... ear, and we stay in the relevant range, what would the total annual cost and unit cost of fixed and variable costs?For Q = 6000The Raw Materials cost, because it is variable cost, v is constant.v = .6 ... l cost = C = V + F = 3900 + 9000 = 12900Unit fixed cost = Building Rent cost per unit = f = 1.5Unit variable cost = Raw Materials cost per unit = v = .650For Q = 8000For Raw Materials cost, since it i ...
Subjects: Businesss Research Papers > Accounting
Cost, Volume, and Profit Formulas
ound between them. The five components consist of volume or level of activity, unit selling prices, variable cost per unit, total fixed costs, and sales mix.The volume or level of activity is the acti ... osts on fleet cars provided to the sales force, and interest on any debt the company might have.The variable cost per unit is a cost a company incurs that remains unchanged per unit, even when there a ...
Subjects: Businesss Research Papers > Accounting
Flexible Budget
x and the relevant range of activity. The activity index is direct labor hours.Step 2: Identify the variable costs, and determine the budgeted variable cost per unit of activity for each cost. There a ... the budgeted variable cost per unit of activity for each cost. There are three variable costs. The variable cost per unit is found by dividing each total budgeted cost by the direct labor hours used ...
Subjects: Businesss Research Papers > Accounting
Cost , Volume and Profit
nt of output or salesUnit selling price: This is the price the firm assigns for selling its productsVariable cost per unit: Those are costs that stay fixed on a per unit basis, but change in total wit ... sold when a company sells more than one product.Unit Contribution Margin = Unit Sales Price - Unit Variable CostBased on the above formula, the Unit Contribution Margin (UCM) increases when the Sales ...
Subjects: Businesss Research Papers > Accounting
E-marketing in Tourism Industry
ion of Thomas Cook which improved customer sales abundantly through its web site in relation to low variable cost of the Internet as a communication mechanism. (McDonald and Wilson, 1999).MarketingWhe ... reach consumers across the world (Briggs, 2001). The current marketing mix consists of 7 marketing variables which are product, price, place, promotion, physical evidence, process and people. It is d ...
Subjects: Businesss Research Papers > Marketing
Contribution Margin and Breakeven Analysis Simulation Managerial Accounting and Finance Foundations – FIN 540
company's contribution margin is simply the percentage of each sales dollar that remains after the variable costs are subtracted. When you know the contribution margin, you can make better decisions ... costs accurately is an essential part of working out the pricing. A business incurs fixed costs and variable costs. Fixed costs are those that are always there, regardless of how much or how little yo ...
Subjects: Businesss Research Papers
How the firm chooses the level of output that maximises profit under perfect competition
demonstrate that total cost is cost that a firm invest to produce. It comprises fixed cost (FC) and variable cost (VC). Fixed cost refers to cost that does not change when the level of output changes, ... that does not change when the level of output changes, just like the existence plant. Additionally, variable cost means cost that changes when quantity produced (Q) changes (Salvatore and Dominick, 20 ...
Subjects: Businesss Research Papers > Markets & Exchanges
Cost, Volume, and Profit Formulas
profits in a business.2.Unit selling prices - It is the price of the company's product sells for.3.Variable cost per unit - It is what the product or services cost to the company. Examples of variabl ... any products for sale and each one of them has a different unit selling price and maybe a different variable cost per unit.The contribution margin per unit indicates that for every product sold, a com ...
Subjects: Businesss Research Papers > Accounting
Cost Analysis of JP Morgan Chase & Co.
company based on the points stated below1Various costs that affect your company: Fixed Costs Variable Costs Life Cycle Costs Operating Costs2Past, current and future cost considerations o ...
Subjects: Businesss Research Papers > Accounting
Brand Extension
ximately 500 units. The second year should lead to the third year for a total of 700 units.With the variable cost of the unit being $83 per unit, it will take 209 units in order to have the company br ... it will take 209 units in order to have the company break even. Based on a break even analysis and variable cost, the total variable costs for the first year will be $34,445 in total variable costs. ...
Subjects: Businesss Research Papers > Management
Differentiating Between Market Structures
it can be seen if the price is above the total cost or if the price is below the cost but above the variable cost. If the price is under the variable cost, no profit can be made.The EW Coal Division i ... standing the different markets and its language, such as supply, demand, marginal costs and average variable cost, the user will be better prepared for the economic and financial future.The Four Marke ...
Subjects: Businesss Research Papers
Strategic Human Resource Management
ective is marginal to corporate plans; in people management perspective, the people are viewed as a variable cost, subject to compliance and organisational control; in the employment relations perspec ...
Subjects: Businesss Research Papers > Management > Human Resource Management