Advertisements
Advertisements
प्रश्न
"Some costs are semi-variable in nature." Comment.
Some costs are semi-variable in nature. Justify either for or against.
Some costs are semi-variable in nature. Justify either for or against and give a reason.
Advertisements
उत्तर
- Definition: Semi-variable costs, often called mixed costs, include both fixed and variable components.
- Fixed Component: Part of the cost is constant, independent of production or activity.
- Variable Component: Part of the cost fluctuates according to output volume or activity level.
- Example: Utility bills frequently include a fixed base price and a variable charge based on usage.
- Behaviour: Semi-variable expenses fluctuate in total but not proportionally to changes in output or activity levels.
- Management: Understanding semi-variable costs is critical for budgeting, forecasting, and decision-making.
APPEARS IN
संबंधित प्रश्न
Write a short note on direct costs.
Total variable cost per unit increases ______.
It refers to the expenses incurred on those items which are not directly chargeable to production. Salaries of timekeeper, foremen and watchmen are examples of this cost. This cost is incurred for the concern as a whole rather than a particular product.
Which definition best describes indirect costs?
Direct cost increases when ______.
What is opportunity cost?
Explain the following:
Sunk cost
Distinguish between Direct Labour cost and Indirect Labour cost.
Give an example of Semi-Fixed cost.
Write short notes on Variable Costs.
