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प्रश्न
What is meant by variable cost?
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उत्तर
- Variable costs are those costs that vary in amount with changes in the level of output or activity.
- Such costs increase and decrease in the same proportion in which the level of output increases or decreases.
- Variable costs vary in total amount but remain constant per unit of production.
- Variable costs are controllable in the short run.
संबंधित प्रश्न
Describe cost on the basis of behaviour.
Overheads are often related to accounting concepts such as fixed cost and ______ cost.
The cost remains same at all levels of output is called ______ cost.
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.
Distinguish between direct costs and indirect costs.
Amount spent to purchase a machinery is the example of ______ cost.
"Some costs are semi-variable in nature." Comment.
Classify cost according to its nature.
Explain with an example, the meaning of fixed costs.
Explain with an example, the meaning of variable costs.
